04:50 AM EDT, 08/02/2024 (MT Newswires) -- SMART Global Holdings ( SGH ) said late Thursday it has priced its offering of $175 million convertible senior notes due 2030, upsized from the initial $150 million offering.

The initial conversion rate of the notes is 35.7034 ordinary shares per $1,000 principal amount of the notes, which is equivalent to an initial conversion price of about $28.01 per share.

Initial purchasers are granted a 13-day option to purchase up to an additional $25 million in principal amount of notes.

In connection with the notes offering, the company also entered into privately negotiated capped call transactions. The cap price of the capped call transactions will initially be about $37.70 per share.

Net proceeds from the offering are estimated to be about $168.7 million, or about $193 million if the initial purchasers fully exercise their overallotment option.

These proceeds will be used to fund the cost of entering into capped call transactions, as well as for the repurchase of the company's existing 2.25% convertible senior notes due 2026.

The offering is set to close around Aug. 6.

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