05:03 PM EST, 12/04/2024 (MT Newswires) -- Semtech ( SMTC ) retreated in extended trading Wednesday, recently sinking over 3%, after disclosing plans for a $400 million public offering of its common stock, subject to market and other conditions.

The electronics and semiconductor supplier also expects to provide underwriters for the upcoming stock sale with a 30-day option to buy up to $60 million of additional shares to cover potential over-allotments.

Semtech ( SMTC ) said it is expecting to use net proceeds from the deal to repay debt owed through its credit facility with a syndicate of banks.