04:57 PM EDT, 05/16/2024 (MT Newswires) -- MKS Instruments ( MKSI ) closed a $1.4 billion private placement of 1.25% convertible senior notes maturing in 2030, which includes the full exercise of the underwriters' option to buy up to $200 million of the notes to cover overallotments.

The notes have an initial conversion price of $154.32 per share. The net proceeds of roughly $1.37 billion will be used to repay about $1.21 billion under a term loan and for general corporate purposes. It also will use a portion of the proceeds for capped call transactions intended to reduce the potential dilution of existing investors if the notes are converted into common stock.