Loan & DebtAug 10, 2026, 11:41 PM
Silicon Motion Prices $1.0B 0.00% Convertible Senior Notes Due 2031
AI Summary
Silicon Motion Technology Corporation announced the pricing of its offering of $1.0 billion aggregate principal amount of 0.00% convertible senior notes due 2031. The offering size was increased from the previously announced $800 million, with initial purchasers having an option to buy an additional $150 million. The notes mature on August 15, 2031, and have an initial conversion price representing a 65.0% premium over the last reported ADS price. The company expects net proceeds of $980 million, which will be used for general corporate purposes and to repay outstanding amounts under its credit agreement.
Key Highlights
- Priced $1,000,000,000 aggregate principal amount of 0.00% convertible senior notes due 2031.
- Offering size increased from previously announced $800,000,000.
- Initial purchasers granted option to buy up to an additional $150,000,000 in notes.
- Notes mature on August 15, 2031, unless earlier repurchased, redeemed, or converted.
- Initial conversion rate is 2.6281 ADSs per $1,000 principal amount.
- Initial conversion price of approximately $380.50 per ADS, a 65.0% premium.
- Estimated net proceeds are $980 million, or $1,127 million if the option is fully exercised.
Price Impact
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