Loan & DebtJun 16, 2026, 01:35 AM
STMicroelectronics to Offer $1.5B Convertible Bonds; Redeems 2027 Bonds
AI Summary
STMicroelectronics N.V. announced a US$1.5 billion dual-tranche offering of new senior unsecured convertible bonds. These bonds will have maturities of 5 years (2031) and 7 years (2033), with interest rates ranging from 0.00% to 1.125% and conversion premiums between 47.5% and 55%. The company will use the proceeds for general corporate purposes, including the early redemption of its outstanding US$750 million Zero Coupon Convertible Bonds due 2027, which will occur on July 16, 2026.
Key Highlights
- Launched US$1.5 billion dual-tranche offering of new convertible bonds.
- New bonds include 5-year (2031) and 7-year (2033) tranches.
- 2031 bonds bear interest 0.00%-0.50% with 47.5%-52.5% conversion premium.
- 2033 bonds bear interest 0.625%-1.125% with 50%-55% conversion premium.
- Proceeds will fund general corporate purposes and bond redemption.
- Early redemption of US$750 million 2027 Convertible Bonds on July 16, 2026.
- 2027 bondholders can convert at US$45.10 per share until July 1, 2026.
- New bonds expected to settle on or about June 23, 2026.
Price Impact
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