Actionable news
All posts from Actionable news
Actionable news in IPHI: INPHI CORPORATION,

Inphi Corporation Prices Offering of $250.0 Million of Convertible Senior Notes

SANTA CLARA, CA, Sep 07, 2016 (Marketwired via COMTEX) -- SANTA CLARA, CA--(Marketwired - Sep 7, 2016) - Inphi Corporation IPHI, -5.76% today announced the pricing of $250.0 million aggregate principal amount of 0.75% convertible senior notes due 2021 (the "notes") in a private placement to qualified institutional buyers pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The size of the offering was increased from the previously announced $200.0 million aggregate principal amount. Inphi granted the initial purchasers of the notes a 13-day option to purchase up to an additional $37.5 million aggregate principal amount of notes on the same terms and conditions. The sale of the notes is scheduled to close on September 12, 2016, subject to satisfaction of customary closing conditions.

Inphi estimates that the net proceeds from this offering will be approximately $243.1 million, after deducting the initial purchasers' discount and estimated offering expenses payable by Inphi, and assuming no exercise of the initial purchasers' option to purchase additional notes. Inphi intends to use a portion of the net proceeds from the offering of the notes to pay the cost of certain capped call transactions (described below). Inphi intends to use the remainder of the net proceeds from the offering of the notes for general corporate purposes, including financing potential acquisitions and other strategic transactions. However, Inphi currently has no commitments with respect to any such acquisitions or other strategic transactions.

When issued, the notes will be unsecured, senior obligations of Inphi, and will pay interest semi-annually at a rate of 0.75% per year, and will not be redeemable prior to maturity. Prior to March 1, 2021, the notes will be convertible only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate for the notes will be 17.7508 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $56.34 per share, and will be subject to adjustment upon the occurrence of certain events. The initial conversion price represents a conversion premium of approximately 35% over the last reported sale price of $41.73 per share of Inphi's common stock on The New York Stock Exchange on...