By Rebecca Melvin
New York, Sept. 7 – Inphi Corp. priced an upsized $250 million of five-year convertible senior unsecured notes at par late Tuesday to yield 0.75% with an initial conversion premium of 35%, according to a news release.
The Rule 144A deal was initially talked at $200 million in size. Pricing came at the rich end of 0.75% to 1.25% coupon talk and at the midpoint of 32.5% to 37.5% premium talk.
The greenshoe was upsized to $37.5 million of additional notes from $30 million.
Joint bookrunners were Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.
Stifel acted as lead manager.
The notes are non-callable with no puts.
In connection with the pricing of the notes, Inphi entered into capped call transactions with certain initial purchasers of the bonds. The cap price of the capped call transactions will initially be $73.0275, representing a 75% initial conversion premium from the issuer’s perspective.
About $19.6 million of the proceeds will be used to pay the net cost of the capped call, with remaining proceeds to be used for general corporate purpose.
Santa Clara, Calif.-based Inphi is an analog/mixed signal communications chip maker.
| Issuer: | Inphi Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $250 million, upsized from $200 million
|
| Greenshoe: | $37.5 million, upsized from $30 million
|
| Maturity: | 2021
|
| Bookrunner: | Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC
|
| Lead manager: | Stifel
|
| Co-managers: | Needham & Co., Craig-Hallum Capital Group, Roth Capital Partners
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 35%
|
| Conversion price: | $56.34
|
| Conversion ratio: | 17.7508 shares
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Capped call: | Yes. Strike on the capped call is $73.0275, representing a 75% premium from the issuer’s perspective
|
| Price talk: | 0.75%-1.25%, up 32.5%-37.5%
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 12
|
| Stock symbol: | Nasdaq: IPHI
|
| Stock reference price: | $41.73 as of close Sept. 6
|
| Distribution: | Rule 144A
|
| Market capitalization: | $1.7 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
