By Kenneth Lim
Boston, Feb. 27 - Skyworks Solutions Inc. priced $200 million of three- and five-year convertible subordinated notes within talk on Tuesday before the market opened.
The $100 million three-year tranche priced at a coupon of 1.25% and an initial conversion premium of 35%. It was talked at a coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%.
The equally sized five-year series priced at a coupon of 1.5% and an initial conversion premium of 35%. It was talked at a coupon of 1.25% to 1.75% and an initial conversion premium of 30% to 35%.
The notes were offered at par.
There is no over-allotment option.
Credit Suisse was the bookrunner of the overnight Rule 144A offering.
The notes are non-callable and may not be put.
There is 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.
| Issuer: | Skyworks Solutions Inc.
|
| Issue: | Convertible subordinated notes
|
| Bookrunner: | Credit Suisse
|
| Greenshoe: | None
|
| Pricing date: | Feb. 27, before the open
|
| Settlement date: | March 2
|
| Distribution: | Rule 144A
|
|
|
| Three-year tranche
|
| Amount: | $100 million
|
| Maturity: | March 1, 2010
|
| Coupon: | 1.25%
|
| Price: | Par
|
| Yield: | 1.25%
|
| Conversion premium: | 35%
|
| Conversion price: | $9.5175
|
| Conversion ratio: | 105.0696
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1%-1.5%, up 30%-35%
|
|
|
| Five-year tranche
|
| Amount: | $100 million
|
| Maturity: | March 1, 2012
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $9.5175
|
| Conversion ratio: | 105.0696
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 1.25%-1.75%, up 30%-35%
|
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