24 March 2021
MACOM prices offering $400m of convertible senior notes
MACOM Technology Solutions Inc of Lowell, MA, USA (which makes semiconductors, components and subassemblies for analog RF, microwave, millimeter-wave and photonic applications) has priced its offering of $400m worth of 0.250% convertible senior notes due 2026 (senior unsecured obligations of MACOM, maturing on 15 March 2026, unless earlier repurchased, redeemed or converted).
The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (as amended). MACOM is also granting initial purchaser of the notes an option to purchase (within a 13-day period from, and including, the date of original issuance of the notes) up to an additional $60m worth.
MACOM intends to use the net proceeds for partial repayment of outstanding term loans. The sale of the notes is expected to close on 25 March, subject to customary closing conditions.
The notes have an initial conversion rate of 12.1767 shares of MACOM’s common stock per $1000 of notes (equivalent to an initial conversion price of about $82.12 per share), representing an approximately 40% conversion premium based on the last reported sale price of MACOM common stock of $58.66 per share on 22 March.