By Stephanie N. Rotondo
Phoenix, May 30 - Vishay Intertechnology Inc. priced $150 million of 30-year convertible senior debentures on Wednesday at par to yield 2.25% with an initial conversion premium of 13.75%, the company said in a press release.
The convertibles were issued via a Rule 144A offering.
The coupon came at the high end of talk, which was for a coupon of 2% to 2.25%, and the conversion premium was in the middle of 12.5% to 15% guidance.
Interest is payable semiannually. Beginning June 1, 2022, contingent interest will accrue in certain circumstances relating to the trading price of the securities.
The debentures are initially convertible into cash or stock, or a combination thereof at an initial conversion rate of 84.6937 common shares per $1,000 of notes. That is an initial effective conversion price of approximately $11.81 per share.
The May 29 closing share price was $10.38.
Additionally, Vishay cannot redeem the convertibles until June 7, 2022. After that, Vishay can redeem the issue at par plus accrued and unpaid interest, assuming a 150% price hurdle.
J.P. Morgan Securities LLC and Goldman Sachs & Co. are the joint bookrunners.
The Malvern, Pa.-based semiconductor manufacturer will use proceeds for share repurchases.
| Issuer: | Vishay Intertechnology Inc.
|
| Securities: | Senior convertible notes
|
| Amount: | $150 million
|
| Maturity: | 2042
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co.
|
| Coupon: | 2.25%, payable semiannually
|
| Price: | Par
|
| Yield: | 2.25%
|
| Conversion premium: | 13.75%
|
| Conversion price: | $11.81
|
| Conversion ratio: | 84.6937 common shares
|
| Calls: | On or after June 7, 2022 at par upon 150% price hurdle
|
| Distribution: | Rule 144A
|
| Price talk: | 2%-2.25% coupon, 12.5%-15% conversion premium
|
| Pricing date: | May 30
|
| Settlement date: | May 31
|
| Stock symbol: | NYSE: VSH
|
| Stock price: | $10.38 at close May 29
|
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