By Dean Seal
Shares of Indie Semiconductor fell after the company said it plans to offer $175 million in convertible senior notes.
The stock was down 20%, at $4.22, in the Tuesday afternoon session. The stock has fallen 48% since the start of the year.
The chipmaker said after the bell on Monday that it has set up a $175 million private offering to institutional buyers, which will include an option to purchase up to an additional $26 million in notes.
The final terms of the notes will be determined when the offering gets priced. Indie can redeem any amount of the notes for cash on or after Dec. 20, 2027. If it redeems fewer than all of them, it has to leave at least $50 million of notes outstanding.
Indie intends to use a portion of the proceeds to pay the cost of capped call transactions it plans to enter into with one or more of the notebuyers. The transactions should help reduce potential stock dilution if the notes are converted, Indie said.
The rest of the proceeds will be used for working capital and general corporate purposes, including potential acquisitions, though Indie doesn't have any deals on paper at this time, the company said.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
December 03, 2024 14:30 ET (19:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。