indie Semiconductor Announces Pricing of Private Offering
indie Semiconductor (NASDAQ: INDI) has priced its private offering of $190 million 3.50% Convertible Senior Notes due 2029, upsized from the initially announced $175 million. The company granted initial purchasers a 13-day option to purchase an additional $28.5 million in notes.
The notes will be convertible into cash, shares, or a combination thereof at an initial conversion rate of 194.6188 shares per $1,000 principal amount, equivalent to $5.14 per share, representing a 27.5% premium to the December 3 closing price. The company expects net proceeds of approximately $183.3 million, with $20.3 million allocated for capped call transactions to reduce potential dilution. The remaining proceeds will be used for working capital and general corporate purposes.
indie Semiconductor (NASDAQ: INDI) ha fissato il prezzo della sua offerta privata di 190 milioni di dollari in Obbligazioni Convertibili Senior al 3,50%, con scadenza nel 2029, aumentato rispetto ai 175 milioni di dollari inizialmente annunciati. L'azienda ha concesso ai compratori iniziali un'opzione di 13 giorni per acquistare ulteriori 28,5 milioni di dollari in obbligazioni.
Le obbligazioni saranno convertibili in contante, azioni, o una combinazione di entrambi ad un tasso di conversione iniziale di 194.6188 azioni per un principale di 1.000 dollari, equivalente a 5,14 dollari per azione, rappresentando un premio del 27,5% rispetto al prezzo di chiusura del 3 dicembre. L'azienda prevede un ricavato netto di circa 183,3 milioni di dollari, con 20,3 milioni di dollari destinati a transazioni di acquisto capitate per ridurre la potenziale diluizione. Il restante ricavato sarà utilizzato per il capitale circolante e per scopi aziendali generali.
indie Semiconductor (NASDAQ: INDI) ha fijado el precio de su oferta privada de 190 millones de dólares en Notas Senior Convertibles al 3.50% con vencimiento en 2029, incrementado desde los 175 millones de dólares inicialmente anunciados. La compañía otorgó a los compradores iniciales una opción de 13 días para comprar 28.5 millones de dólares adicionales en notas.
Las notas serán convertibles en efectivo, acciones o una combinación de ambos a una tasa de conversión inicial de 194.6188 acciones por cada 1,000 dólares de monto principal, equivalente a 5.14 dólares por acción, lo que representa una prima del 27.5% sobre el precio de cierre del 3 de diciembre. La compañía espera ingresos netos de aproximadamente 183.3 millones de dólares, con 20.3 millones de dólares asignados a transacciones de compra limitadas para reducir la posible dilución. El resto de los ingresos se utilizará para capital de trabajo y propósitos corporativos generales.
인디 반도체 (NASDAQ: INDI)는 1억 9천만 달러 규모의 3.50% 전환 우선채권을 2029년 만기 기준으로 가격을 책정했으며, 이는 처음 발표한 1억 7천5백만 달러에서 증액된 것입니다. 회사는 초기 구매자에게 추가로 2천8백5십만 달러의 채권을 구매할 수 있는 13일의 옵션을 부여했습니다.
이 채권은 당초 1,000달러의 원금액당 194.6188주로 전환 가능하며, 이는 주당 5.14 달러에 해당하며, 12월 3일 종가 대비 27.5%의 프리미엄을 나타냅니다. 회사는 약 1억 8천3백만 달러의 순수입을 예상하고 있으며, 2천3백만 달러는 잠재적 희석 방지를 위한 제한된 콜 거래에 배정될 것입니다. 남은 수익은 운영 자본 및 일반 기업 목적에 사용될 예정입니다.
indie Semiconductor (NASDAQ: INDI) a fixé le prix de son offre privée de 190 millions de dollars en Obligations Convertibles Senior à 3,50% arrivant à échéance en 2029, augmentée par rapport aux 175 millions de dollars initialement annoncés. La société a accordé aux acheteurs initiaux une option de 13 jours pour acheter 28,5 millions de dollars supplémentaires en obligations.
Les obligations seront convertibles en espèces, en actions ou en une combinaison des deux à un taux de conversion initial de 194,6188 actions pour un montant principal de 1 000 dollars, équivalant à 5,14 dollars par action, représentant une prime de 27,5% par rapport au prix de clôture du 3 décembre. La société attend des produits nets d'environ 183,3 millions de dollars, dont 20,3 millions de dollars consacrés à des transactions de couverture pour réduire la dilution potentielle. Les produits restants seront utilisés pour le fonds de roulement et des fins d'entreprise générales.
indie Semiconductor (NASDAQ: INDI) hat den Preis für ihr privates Angebot von 190 Millionen Dollar an 3,50% wandelbaren vorrangigen Anleihen mit Fälligkeit 2029 festgelegt, erhöht von ursprünglich 175 Millionen Dollar. Das Unternehmen hat den Erstkäufern eine 13-tägige Option eingeräumt, zusätzliche 28,5 Millionen Dollar an Anleihen zu erwerben.
Die Anleihen werden zu Bargeld, Aktien oder einer Kombination davon wandelbar sein, zu einem anfänglichen Umwandlungskurs von 194.6188 Aktien pro 1.000 Dollar Nennwert, was 5,14 Dollar pro Aktie entspricht und eine Prämie von 27,5% gegenüber dem Schlusskurs vom 3. Dezember darstellt. Das Unternehmen erwartet Nettoerlöse von etwa 183,3 Millionen Dollar, wobei 20,3 Millionen Dollar für capped Call-Transaktionen vorgesehen sind, um potenzielle Verwässerung zu reduzieren. Der verbleibende Erlös wird für Betriebskapital und allgemeine Unternehmenszwecke verwendet.
- Successful upsizing of offering from $175M to $190M indicates strong investor interest
- Additional $28.5M option granted to initial purchasers
- Net proceeds of $183.3M (potentially $210.9M with full option exercise) strengthens balance sheet
- Implementation of capped call transactions to minimize shareholder dilution
- Potential dilution for existing shareholders upon note conversion
- Additional debt burden with 3.50% interest rate
- Increased financial obligations with semi-annual interest payments
Insights
This convertible note offering represents a significant capital raise for indie Semiconductor, securing
The implementation of capped call transactions with a cap price of
The successful pricing of this convertible offering amid challenging market conditions signals institutional confidence in indie's growth trajectory in the automotive solutions space. The terms, including the
The structured hedging through capped calls helps manage market impact and protects against excessive dilution, particularly important given indie's current market cap of
The notes will be senior unsecured obligations of indie, and interest on the notes will be payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2025. The notes will mature on December 15, 2029, unless earlier repurchased, redeemed or converted.
indie estimates that the net proceeds from the offering will be approximately
indie may not redeem the notes prior to December 20, 2027. indie may redeem for cash all or any portion of the notes, at indie’s option, on or after December 20, 2027 if the last reported sale price of indie’s Class A common stock (the “common stock”), as determined by indie, has been at least
The notes will be convertible into cash, shares of common stock or a combination of cash and shares of common stock, at indie’s election, at an initial conversion rate of 194.6188 shares of common stock per
Prior to the close of business on the business day immediately preceding September 15, 2029, the notes will be convertible at the option of the holders only upon the satisfaction of certain conditions and during certain periods. Thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date, the notes will be convertible at the option of the holders at any time regardless of these conditions. If indie undergoes a “fundamental change” (as defined in the indenture governing the notes), holders may require indie to repurchase for cash all or any portion of their notes at a price equal to
In connection with the pricing of the notes, indie entered into privately negotiated capped call transactions (the “capped call transactions”) with certain of the initial purchasers or their respective affiliates and other financial institutions (the “option counterparties”). The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the notes, the number of shares of indie’s common stock initially underlying the notes. The capped call transactions are expected generally to reduce the potential dilution to indie’s common stock upon any conversion of the notes and/or offset any cash payments indie may be required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap initially equal to
In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of indie’s common stock and/or enter into various derivative transactions with respect to indie’s common stock concurrently with or shortly after the pricing of the notes. These activities could increase (or reduce the size of any decrease in) the market price of indie’s common stock or the notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to indie’s common stock and/or purchasing or selling common stock or other securities of indie in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so during any observation period related to a conversion of the notes or, to the extent indie exercises the relevant election under the capped call transactions, following any repurchase or redemption of the notes). This activity could also cause or avoid an increase or a decrease in the market price of indie’s common stock or the notes, which could affect the ability of holders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the number of shares and value of the consideration that a holder will receive upon conversion of its notes.
The notes and the shares of common stock issuable upon conversion of the notes, if any, have not been, and will not be, registered under the Securities Act, or under any state securities laws, and may not be offered or sold in
About indie
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Safe Harbor Statement
This communication contains “forward-looking statements” (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements can be identified by words such as “will likely result,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “plan,” “project,” “outlook,” “should,” “could,” “may” or words of similar meaning and include, but are not limited to, statements regarding our future business and financial performance and prospects, including our expectations regarding the offering of the notes and the capped call transactions described in this press release, the completion of the offering on the anticipated terms or at all, including the satisfaction of the closing conditions related to the offering, the expected impact of the capped call transactions and the anticipated use of proceeds from the offering. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results included in such forward-looking statements. In addition to the factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 29, 2024 (and as amended by Amendment No. 1 to the Form 10-K filed with the SEC on March 20, 2024) and in our other public reports filed with the SEC (including those identified under “Risk Factors” therein), the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: macroeconomic conditions, including inflation, rising interest rates and volatility in the credit and financial markets; the impacts of the ongoing conflicts in
Investors are cautioned not to place undue reliance on the forward-looking statements in this press release, which information set forth herein speaks only as of the date hereof. We do not undertake, and we expressly disclaim, any intention or obligation to update any forward-looking statements made in this announcement or in our other public filings, whether as a result of new information, future events or otherwise, except as required by law.
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Source: indie Semiconductor
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