03:52 AM EDT, 05/30/2024 (MT Newswires) -- Microchip Technology ( MCHP ) said late Wednesday it priced $1.1 billion of 0.75% convertible senior notes due 2030 in a private offering.

The company granted the initial purchasers a 13-day option to buy up to an additional $150 million of notes.

The sale is expected to settle on Friday. Interest will be payable semi-annually in arrears, starting Dec. 1.

The notes will be convertible at an initial rate of 8.2076 shares of common stock per $1,000 of notes, equivalent to an initial conversion price of about $121.84 per share.

The company said it plans to use $92.4 million of the net proceeds to pay the cost of certain capped call transactions and the remaining to repay debt.

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