Vishay holders put back nearly all 3.625% convertibles

By Susanna Moon

Chicago, Aug. 1 - Vishay Intertechnology, Inc. said investors exercised put options on 99.6% of the $500 million of 3.625% convertible subordinated notes due 2023.

The option expired at 5 p.m. ET on July 29.

The company said it would pay par plus accrued interest to the purchase date for the convertibles.

Vishay said it intends to fund the purchase price from about $250 million of cash on hand, from borrowings under the revolving credit facility and from a $125 million term loan.

The Malvern, Pa., maker of electronic components said that it amended its revolving credit facility to provide an additional $125 million three-year term loan commitment.

"The repayment of the convertible notes will reduce our debt and strengthen our balance sheet. Last June, our board of directors determined to waive our right to settle the principal amount of the notes in common stock. By settling the option in cash, we eliminated the need to issue almost 50 million shares of common stock," Richard Grubb, Vishay's chief financial officer, said in a news release.

U.S. Bank, NA (215 761-9395) is the paying agent.

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