04:59 AM EDT, 05/14/2024 (MT Newswires) -- MKS Instruments ( MKSI ) said late Monday it priced its private offering of $1.2 billion of its 1.25% convertible unsecured senior notes due June 1, 2030, upsized from its initial size of $1 billion.

The conversion rate for the notes will initially be 6.4799 common shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of about $154.32 per share.

Initial purchasers have been granted a 13-day option to purchase up to an additional $200 million of the notes.

Interest on the notes will be payable semi-annually in arrears starting Dec. 1. The offering is expected to close on Thursday.

The company plans to use about $143.52 million of the net proceeds to pay the cost of certain capped call transactions, and the remaining to repay about $1.03 billion in borrowings outstanding under its First Lien USD tranche B term loan as well as for general corporate purposes.

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