STMicroelectronics Launches $1.5 Billion in Convertible Bonds
STMicroelectronics announced on Tuesday the launch of a $1.5 billion convertible bond offering in two tranches, with maturities of 5 and 7 years. The operation includes the early repayment of its convertible bonds due in 2027.
The Franco-Italian manufacturer is launching a convertible bond offering in two parts. The 2031 convertible bonds (5 years) will carry an annual interest rate between 0.00% and 0.50%, while the 2033 convertible bonds (7 years) will generate an annual interest rate between 0.625% and 1.125%. Both tranches will be issued and redeemed at par (100% of the principal amount). The initial conversion price will be set at a premium ranging from 47.5% to 52.5% over the weighted average share price on Euronext Milan from market open to the pricing moment (2031 tranche), and between 50% and 55% (2033 tranche), converted into US dollars at the prevailing exchange rate at the time of pricing.
Early Repayment of the 2027 Bonds
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STMicroelectronics will proceed with the early repayment of its $750 million zero-coupon convertible bonds due in 2027 (ISIN: XS2211997239). Holders of these bonds may exercise their conversion rights until July 1, 2026, at the current conversion price of $45.10 per share. The actual repayment will take place on July 16, 2026. The settlement of the new convertible bonds is scheduled for around June 23, 2026. The net proceeds from the offering will be used for general corporate purposes, including the financing of the early repayment of the 2027 bonds. The company commits to a 90-day lock-up period from the pricing date regarding its shares and related securities. The new convertible bonds will be submitted for admission to trading on the open market (Freiverkehr) of the Frankfurt Stock Exchange within 90 days following the settlement.
Jean-Marc Chéry, Président du Directoire et Directeur Général de ST, a déclaré :
Risks mentioned
Diminution des charges liées aux capacités non utilisées.
Changements éventuels des tarifs douaniers globaux.
Opportunities identified
Contribution de l'activité capteurs MEMS de NXP au chiffre d'affaires net.
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