By Ronda Fears
Nashville, Tenn., Nov. 6 - Skyworks Solutions Inc. sold an upsized $200 million of five-year convertible subordinated notes in the Rule 144A market at par to yield 4.75% with a 15% initial conversion premium via sole lead manager Credit Suisse First Boston.
Price talk on the deal, which was upped from $160 million, had put the coupon between 4.5% and 5.0% with the premium between 15% and 20%.
The Woburn, Mass.-based wireless semiconductor company began operations in June, following the merger between Alpha Industries Inc. and Conexant Systems Inc.'s wireless communications business.
About $120 million of the proceeds are earmarked to repay the financing agreement with Conexant. The balance will be used for working capital, the company said.
Terms of the new deal are:
| Issuer: | Skyworks Solutions Inc.
|
| Amount: | $200 million
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| Greenshoe: | $30 million
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| Lead manager: | Credit Suisse First Boston
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| Maturity date: | Nov. 15, 2007
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| Coupon: | 4.75%
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| Issue price: | Par
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| Conversion premium: | 15%
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| Conversion price: | $9.051
|
| Conversion ratio: | 11.0491
|
| Call: | Non-callable for three years
|
| Settlement date: | Nov. 12
|
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