indie Semiconductor Announces Proposed Convertible Senior Notes Offering
indie Semiconductor (NASDAQ: INDI) announced plans to offer $175 million in Convertible Senior Notes due 2029 through a private offering to qualified institutional buyers. The company will grant initial purchasers an option for an additional $26.25 million in notes. The notes will be convertible into cash, shares of indie's Class A common stock, or a combination thereof. indie plans to enter into capped call transactions to reduce potential stock dilution and will use the proceeds for working capital, general corporate purposes, and potential acquisitions.
indie Semiconductor (NASDAQ: INDI) ha annunciato piani per offrire 175 milioni di dollari in Note Convertibili Senior con scadenza nel 2029 tramite un'offerta privata per acquirenti istituzionali qualificati. L'azienda concederà agli acquirenti iniziali un'opzione per ulteriori 26,25 milioni di dollari in note. Le note saranno convertibili in contante, azioni della classe A comune di indie, o una combinazione di entrambi. indie prevede di stipulare transazioni di call cap per ridurre la potenziale diluizione delle azioni e utilizzerà i proventi per il capitale circolante, fini aziendali generali e potenziali acquisizioni.
indie Semiconductor (NASDAQ: INDI) anunció planes para ofrecer 175 millones de dólares en Notas Senior Convertibles con vencimiento en 2029 a través de una oferta privada para compradores institucionales calificados. La compañía otorgará a los compradores iniciales una opción para un adicional de 26,25 millones de dólares en notas. Las notas serán convertibles en efectivo, acciones de la clase A común de indie, o una combinación de ambos. indie planea realizar transacciones de call capped para reducir la posible dilución de acciones y utilizará los ingresos para capital de trabajo, propósitos corporativos generales y posibles adquisiciones.
indie Semiconductor (NASDAQ: INDI)는 자격을 갖춘 기관 투자자에게 2029년에 만료되는 1억 7500만 달러 규모의 전환형 고급 채권을 사모 형식으로 제공할 계획을 발표했습니다. 회사는 초기 구매자에게 2625만 달러의 추가 채권에 대한 옵션을 부여할 것입니다. 이 채권은 현금, indie의 A 클래스 보통주 또는 이들의 조합으로 전환될 수 있습니다. indie는 주식 희석 가능성을 줄이기 위해 캡 콜 거래에 진입할 계획이며, 수익금은 운영 자본, 일반 회사 목적 및 잠재적 인수에 사용할 것입니다.
indie Semiconductor (NASDAQ: INDI) a annoncé des plans pour offrir 175 millions de dollars en Obligations Senior Convertibles arrivant à échéance en 2029 à travers une offre privée destinée aux acheteurs institutionnels qualifiés. L'entreprise accordera aux acheteurs initiaux une option pour un montant supplémentaire de 26,25 millions de dollars en obligations. Les obligations seront convertibles en espèces, en actions ordinaires de classe A de indie, ou en une combinaison des deux. indie prévoit de réaliser des transactions d'options capées pour réduire la dilution potentielle du capital et utilisera les recettes pour le fonds de roulement, des fins générales de l'entreprise et d'éventuelles acquisitions.
indie Semiconductor (NASDAQ: INDI) gab bekannt, dass sie plant, 175 Millionen US-Dollar in wandelbare vorrangige Anleihen mit Fälligkeit im Jahr 2029 über ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen wird den Erstkäufern eine Option auf weitere 26,25 Millionen US-Dollar in Anleihen gewähren. Die Anleihen werden in Bargeld, Stammaktien der Klasse A von indie oder eine Kombination davon umwandelbar sein. indie plant, capped call Transaktionen einzugehen, um die mögliche Aktienverdünnung zu reduzieren, und wird die Einnahmen für Betriebskapital, allgemeine Unternehmenszwecke und mögliche Akquisitionen verwenden.
- Additional capital raise of $175 million with potential for $26.25 million more
- Implementation of capped call transactions to minimize shareholder dilution
- Flexibility in conversion terms (cash, stock, or combination)
- Potential dilution of existing shareholders upon conversion
- Additional debt burden on the company's balance sheet
- Interest payment obligations will increase operating expenses
Insights
This
The capped call transactions are a smart defensive move to minimize potential share dilution and protect existing shareholders. However, the complex hedging activities by option counterparties could create short-term stock price volatility. The redemption option after December 2027 with a
The final terms of the notes, including the initial conversion rate, interest rate and certain other terms of the notes will be determined at the time of the pricing of the offering. If and when issued, the notes will be senior unsecured obligations of indie, and will be convertible by the holder of the notes into, subject to various conditions, cash, shares of indie’s Class A common stock (“common stock”) or a combination of cash and common stock, at indie’s election. 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. Subject to certain conditions, indie may redeem for cash all or any portion of the notes, at its option, on or after December 20, 2027. If indie redeems fewer than all the outstanding notes, at least
In connection with the pricing of the notes, indie expects to enter into privately negotiated capped call transactions (the “capped call transactions”) with one or more of the initial purchasers or their respective affiliates and/or 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. If the initial purchasers exercise their option to purchase additional notes, indie expects to enter into additional capped call transactions with the option counterparties.
indie intends to use a portion of the net proceeds from the notes offering to pay the cost of the capped call transactions. indie intends to use the remainder of the net proceeds from the offering for working capital and general corporate purposes, which may include potential acquisitions. However, indie does not have agreements or understandings with respect to any acquisitions at this time.
In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to purchase shares of 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
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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 proposed offering of notes and related capped call transactions described in this press release, the completion, timing and size of the proposed offering, the effects of entering into the capped call transactions and the anticipated use of proceeds therefrom. 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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