Microchip Technology (MCHP) said Friday that it has priced an underwritten public offering of $1.35 billion worth of depositary shares at $50.00 per depositary share.

Each depositary share represents a 1/20th interest in a share of newly issued 7.50% series a mandatory convertible preferred stock, the company said.

Microchip also said it has granted the underwriters in the offering a 13-day option to purchase up to $135 million worth of additional depositary shares.

The offering is expected to close on Tuesday, the company said.

The net proceeds from the offering will be approximately $1.32 billion, which Microchip said it intends to use to pay the cost of capped call transactions and to repay existing debt.