09:49 AM EDT, 05/13/2024 (MT Newswires) -- MKS Instruments ( MKSI ) shares were down 5.4% in recent Monday trading after the company said it plans to offer $1 billion aggregate principal amount of convertible senior notes due 2030 in a private placement, subject to market conditions.

The technology services company said it expects to grant initial purchasers an option to purchase up to $150 million in additional notes.

MKS intends to enter into privately negotiated capped call transactions with the option counterparties to offset potential dilution and cash payments, the company added.

A portion of the net proceeds from the offering is intended to be used to pay for capped call transactions, while the remainder is to repay about $850 million in borrowings and for general corporate purposes, MKS Instruments ( MKSI ) said.

The company said the notes, which will be unsecured, senior obligations of MKS, will bear interest semi-annually and mature on June 1, 2030, unless converted, redeemed, or repurchased earlier. Upon conversion, MKS said it would pay cash up to the aggregate principal amount of the notes, with the remainder in cash, shares of common stock, or a combination thereof.

Price: 122.19, Change: -8.31, Percent Change: -6.37