Microchip Technology Incorporated has announced a public offering of $1.35 billion of depositary shares, each representing a portion of newly issued Series A Mandatory Convertible Preferred Stock. The Company plans to grant underwriters a 13-day option to purchase additional shares to cover over-allotments. The net proceeds from the offering will be used to pay for capped call transactions and to repay existing debt.
J.P. Morgan, BofA Securities, and BNP Paribas are acting as lead joint bookrunning managers for the offering, with J. Wood Capital Advisors serving as Microchip’s financial advisor. The preferred stock will automatically convert into common stock on or around March 15, 2028, based on a conversion rate to be determined at the time of pricing.
Microchip will apply to list the depositary shares on The Nasdaq Global Select Market under the symbol “MCHPP.” The Company will also enter into capped call transactions to hedge against potential dilution of common stock upon conversion of the preferred stock.
A registration statement on Form S-3 has been filed with the SEC, and the offering will be made through a prospectus supplement and accompanying prospectus. This press release includes forward-looking statements regarding the offering, cautioning investors about potential risks and uncertainties.
Investor relations contacts for Microchip include Eric Bjornholt, CFO, and Sajid Daudi, Head of Investor Relations. Additional information can be found on Microchip’s website or the SEC’s website. Microchip advises against placing undue reliance on forward-looking statements and commits to updating information as necessary.
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