Microchip Technology has priced a public offering of depositary shares, proceeds to be used for capped call transactions and debt repayment.
From GlobeNewswire: 2025-03-21 00:00:00
Microchip Technology Incorporated has priced its underwritten public offering of $1.35 billion of depositary shares, each representing a 1/20th interest in newly issued preferred stock at a public offering price of $50.00 per depositary share. The offering is expected to close on March 25, 2025. Net proceeds will be approximately $1.32 billion, with funds to be used for capped call transactions and debt repayment. Holders of depositary shares will have rights to proportional interests in the preferred stock. Microchip has applied to list the depositary shares on The Nasdaq Global Select Market. The offering is made pursuant to a registration statement on Form S-3.
The depositary shares have been priced by Microchip Technology Incorporated in an underwritten public offering. The offering includes preferred stock that will accumulate dividends at a rate of 7.50% per annum. The preferred stock will automatically convert into shares of common stock, subject to anti-dilution adjustments. Microchip entered into capped call transactions to hedge against potential dilution to the common stock upon conversion of the preferred stock. The capped call transactions are expected to reduce or offset potential dilution, with a cap price initially representing a premium over the last reported sale price of the common stock.
Investors can obtain copies of the final prospectus supplement and accompanying prospectus from the SEC’s website or by contacting J.P. Morgan Securities LLC, BofA Securities, Inc, or BNP Paribas Securities Corp. The offering is not an offer to sell or solicitation of an offer to buy securities. Microchip cautions that statements in the press release relating to the proposed offering are forward-looking and involve risks and uncertainties. Investors are advised not to place undue reliance on forward-looking statements. Contact Microchip’s Investor Relations for more information.
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