Skyworks plans $200 mln convertibles: three year at 1%-1.5%, five year at 1.25%-1.75%, all up 30%-35%

By Kenneth Lim

Boston, Feb. 26 - Skyworks Solutions Inc. plans to price $200 million of three- and five-year convertible subordinated notes in two tranches on Tuesday before the market opens. The three-year notes are talked at a coupon of 1% to 1.5%, while the five-year notes are talked at a coupon of 1.25% to 1.75%. The initial conversion premium is talked at 30% to 35% for both series.

The notes will be offered at par.

There is no over-allotment option.

Credit Suisse is the bookrunner of the overnight Rule 144A offering.

The notes will be non-callable and may not be put.

There will be dividend and takeover protection.

Skyworks, a Woburn, Mass.-based supplier of mobile communications semiconductors, plans to use the proceeds of the deal to buy back up to $50 million of its common stock, to repay its outstanding debt and to fund general purposes, which may include acquisitions.

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