By Rebecca Melvin
New York, Nov. 4 - Vishay Intertechnology Inc. priced $275 million of 30-year convertible notes before the market open on Thursday at par to yield 2.25% with an initial conversion premium of 12.5%, according to a news release.
The Rule 144A offering, sold via bookrunner J.P. Morgan Securities LLC, included a $25 million greenshoe, which was exercised concurrently with the $250 million base.
Pricing came toward the cheap end of talk for the coupon, which was talked to yield 2.125% to 2.625%, and at the midpoint of premium talk, which was 10% to 15%.
The senior notes will be non-callable for 10 years and then will be provisionally callable subject to a 150% price hurdle. There are no puts.
The deal is expected to close Nov. 9.
Proceeds are for share repurchases and general corporate purposes.
Malvern, Pa.-based Vishay makes semiconductors and electronic components.
| Issuer: | Vishay Intertechnology Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $275 million, including $25 million exercised greenshoe
|
| Maturity: | Nov. 15, 2040
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Coupon: | 2.5%
|
| Price: | Par
|
| Yield: | 2.5%
|
| Conversion premium: | 12.5%
|
| Conversion price: | $13.88
|
| Conversion ratio: | 72.0331
|
| Call option: | On Nov. 20, 2020, then provisionally callable subject to 150% price hurdle
|
| Price talk: | 2.125%-2.625%, up 10%-15%
|
| Pricing date: | Nov. 4, before market open
|
| Settlement date: | Nov. 9
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: VSH
|
| Stock reference price: | $12.34
|
| Market capitalization: | $2.48 billion
|
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