STMicroelectronics plans $1 billion convertible bonds in two parts

By Rebecca Melvin

New York, June 26 – STMicroelectronics NV launched a $1 billion offering of convertible bonds on Thursday in two tranches of five- and seven-year notes. Pricing was expected later in the day, according to a news release.

The five-year tranche of the Regulation S convertibles was not expected to bear interest and was talked at an initial conversion premium of 30% to 40% over the volume-weighted average price of shares on the Borsa Italiana between launch and pricing.

The seven-year tranche was talked to yield 0.5% to 1% with a 31% to 41% premium.

JPMorgan, BNP Paribas, Banca IMI, Morgan Stanley, Societe Generale CIB and UniCredit are acting as joint bookrunners of the offering.

The company also announced a share buyback program for a maximum of 20 million shares, representing about 2.2% of the company’s share capital.

The price paid for any ordinary shares purchased will be subject to a minimum of €1.04 and a maximum of 110% of the average of the highest price at which the ordinary shares are quoted on each of the five trading days prior to the purchase on the Euronext Paris, the New York Stock Exchange or Borsa Italiana.

Proceeds of the bond offering are earmarked for general corporate purposes.

Application will be made to list the bonds on the Open Market of the Frankfurt Stock Exchange.

STMicroelectronics is a semiconductor company based in Geneva.

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