Kulicke and Soffa Industries prices $100 million convertibles to yield 0.875%, up 50%

New York, May 31 - Kulicke and Soffa Industries, Inc. said it set terms on a $100 million offering of convertible subordinated notes due 2012 after the close Thursday, pricing them to yield 0.875% with a 50% initial conversion premium.

The coupon was at the cheap end of talk for 0.75% to 0.875%. Talk for the initial conversion premium was 50%, the same as the actual pricing level.

The notes were talked at a reoffered price of 98 to 98.5. The actual reoffer price was not available late Thursday.

The conversion price is $14.355 and the conversion ratio 69.6621. If the stock price exceeds the conversion price at the time of conversion, holders will receive up to an additional 34.8311 shares per $1,000 principal amount of notes.

Banc of America is the bookrunner of the Rule 144A offering.

There is an over-allotment option for a further $10 million.

The convertibles are non-callable and may not be put.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

Kulicke and Soffa, a Fort Washington, Pa.-based maker of semiconductor equipment and packaging materials, said it will buy back up to $40 million of its common stock concurrently with the offering and use the remaining proceeds to retire part of its outstanding 0.5% convertible subordinated notes due 2008.

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