Microchip buys back $38.1 million convertibles, spends $90.3 million

By William Gullotti

Buffalo, N.Y., May 12 – Microchip Technology Inc. entered into separate private repurchase agreements with holders of three series of convertible bonds on May 10, according to an 8-K filing with the Securities and Exchange Commission.

Microchip agreed to repurchase about (i) $5.7 million of the company’s 1.625% convertible senior subordinated notes due 2025 for roughly $19 million, (ii) $25.9 million of its 1.625% convertible senior subordinated notes due 2027 for about $56.4 million and (iii) $6.5 million of its 2.25% convertible junior subordinated notes due 2037 for around $14.9 million.

The transactions are expected to close on Friday.

After closing, $6.8 million of the 2025 notes will remain outstanding, $56.3 million of the 2027 notes will be outstanding, and none of the 2037 notes will remain outstanding.

Microchip Technology is a Chandler, Ariz., manufacturer of microcontroller, memory and analog semiconductors.

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