TAIPEI (dpa-AFX) - Silicon Motion Technology Corp. (SIMO), a designer and marketer of NAND flash controllers for solid-state storage devices, on Monday announced plans to offer $800 million aggregate principal amount of 0% convertible senior notes due 2031 in a private offering to qualified institutional buyers.
The company also expects to grant the initial purchasers an option to purchase up to an additional $120 million aggregate principal amount of the notes.
The notes will be senior, unsecured obligations and will mature on August 15, 2031, unless earlier repurchased, redeemed or converted.
The notes will not bear regular interest, and the principal amount will not accrete.
The company intends to use the net proceeds for general corporate purposes and to repay outstanding amounts under its credit agreement.
The company also said that pending such use, the company may invest the proceeds in short-term, investment-grade, interest-bearing securities.
The initial conversion rate and other terms of the notes will be determined at pricing.
In the pre-market trading, Silicon Motion Technology Corp. is 5.51% lesser at $242 on the Nasdaq.
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