Impinj, Inc. Announces Proposed Private Offering of $225 Million of Convertible Senior Notes Due 2027

Rhea-AI Summary

Impinj, Inc. (NASDAQ: PI) plans to offer $225 million of Convertible Senior Notes due 2027 in a private offering, subject to market conditions. An additional $33.75 million option may be granted to initial purchasers. The notes will be senior, unsecured, and convertible into cash, stock, or a mix. Proceeds will repurchase a portion of outstanding 2.00% Convertible Senior Notes due 2026 and for general corporate purposes. Market activities related to the repurchase could affect stock prices and conversion rates.

Positive

• Intended use of proceeds for repurchasing existing notes supports debt management.
• Offering has potential to strengthen financial position through refinancing.

Negative

• Issuance of notes may dilute existing shareholders' equity.
• Market activities could lead to increased volatility in stock price.

SEATTLE--(BUSINESS WIRE)-- Impinj, Inc. (Nasdaq: PI) a leading RAIN RFID provider and Internet of Things pioneer, today announced its intention to offer, subject to market conditions and other factors, $225 million aggregate principal amount of Convertible Senior Notes due 2027 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Impinj also expects to grant the initial purchasers of the notes a 13-day option to purchase up to an additional $33.75 million aggregate principal amount of the notes.

The notes will be senior, unsecured obligations of Impinj, and will bear interest payable semi-annually in arrears. The notes will be convertible into cash, shares of Impinj’s common stock or a combination thereof, at Impinj’s election. The interest rate, conversion rate and other terms of the notes are to be determined upon pricing of the offering.

Impinj intends to use a significant portion of the net proceeds of the offering of the notes to repurchase for cash a portion of the aggregate principal amount of its outstanding 2.00% convertible senior notes due 2026 (the “2026 notes”) through individual privately negotiated transactions concurrently with the offering of the notes (collectively, the “2026 Note Repurchase”). Impinj intends to use the remainder of the net proceeds from the offering of the notes for general corporate purposes.

In connection with the 2026 Note Repurchase, holders of the 2026 notes may enter into or unwind various derivatives with respect to Impinj’s common stock (including entering into derivatives with one or more of the initial purchasers in the offering of the notes or their respective affiliates) and/or purchase shares of Impinj’s common stock concurrently with or shortly after the pricing of the notes. The 2026 Note Repurchase, and the potential related market activities by selling holders of the 2026 notes (such as purchases of shares of Impinj’s common stock), could increase (or reduce the size of any decrease in) the market price of Impinj’s common stock, which may also affect the trading price of the notes at that time. Such activity could affect the market price of Impinj’s common stock concurrently with the pricing of the notes, and could result in a higher effective conversion price for the notes. Impinj cannot predict the magnitude of such market activity or the overall effect it will have on the price of the notes offered or Impinj’s common stock.

The notes will only be offered to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act by means of a private offering memorandum. Neither the notes nor the shares of Impinj’s common stock potentially issuable upon conversion of the notes, if any, have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Impinj

Impinj (NASDAQ: PI) helps businesses and people analyze, optimize, and innovate by wirelessly connecting billions of everyday things – such as apparel, automobile parts, luggage, and shipments – to the Internet. The Impinj platform uses RAIN RFID to deliver timely data about these everyday things to business and consumer applications, enabling a boundless Internet of Things.

Impinj is a registered trademark of Impinj, Inc. All other trademarks are the property of their owners.

Cautionary Language Concerning Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the proposed terms of the notes, the timing and size of the notes offering, the granting of a 13-day option to purchase additional notes, the extent, and potential effects, of the 2026 Note Repurchase, the potential dilution to Impinj’s common stock, the conversion price for the notes and the expected use of the proceeds from the sale of the notes, including the 2026 Note Repurchase, and other statements contained in this press release that are not historical facts. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Impinj’s control. Impinj’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Impinj’s filings and reports with the Securities and Exchange Commission (“SEC”), as well as other filings and reports that may be filed by Impinj from time to time with the SEC. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for Impinj’s products may develop more slowly than expected or than it has in the past; quarterly and annual operating results may fluctuate more than expected; Impinj faces intense competition in its market; Impinj’s vulnerability to silicon wafer shortages; the impact of the COVID-19 pandemic on Impinj’s business; weakened global economic conditions may adversely affect its industry or customers; changes in foreign exchange rates; general political or destabilizing events, including war, conflict or acts of terrorism; Impinj’s average selling prices and gross margins may decline and adversely impact its financial performance; Impinj may be unable to adequately protect its intellectual property; changes to the regulatory regime for Impinj’s products and services may harm its business; and other risks and uncertainties. Past performance is not necessarily indicative of future results. Impinj anticipates that subsequent events and developments will cause its views to change. Impinj undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Impinj’s views as of any date subsequent to the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005902/en/

Investor Relations

Andy Cobb, CFA

Vice President, Strategic Finance

+1-206-315-4470

ir@impinj.com

Media Relations

Jill West

Vice President, Strategic Communications

+1 206-834-1110

jwest@impinj.com

Source: Impinj, Inc.

FAQ

What is the total amount of Convertible Senior Notes being offered by Impinj (PI)?

Impinj is offering a total of $225 million in Convertible Senior Notes due 2027.

How will Impinj (PI) use the proceeds from the note offering?

Proceeds will be used to repurchase a portion of outstanding 2.00% Convertible Senior Notes due 2026 and for general corporate purposes.

What options are available to initial purchasers of the notes?

Initial purchasers may have a 13-day option to purchase up to an additional $33.75 million in notes.

What are the implications of the 2026 Note Repurchase for Impinj (PI) shareholders?

The 2026 Note Repurchase could affect the market price of Impinj's stock and may lead to potential dilution.

When are the Convertible Senior Notes due for Impinj (PI)?

The Convertible Senior Notes are due in 2027.