MCHP » Topics » MICROCHIP TECHNOLOGY TO OFFER $900 MILLION JUNIOR SUBORDINATED CONVERTIBLE DEBENTURES
This excerpt taken from the MCHP 8-K filed Dec 7, 2007.
MICROCHIP TECHNOLOGY TO OFFER
$900 MILLION JUNIOR SUBORDINATED
Arizona December 3, 2007 (NASDAQ: MCHP) Microchip Technology
Incorporated announced today that it proposes to offer $900 million of
convertible junior subordinated debentures, subject to market conditions and
other factors. The debentures would be due in 2037 and are to be offered and
sold to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended. The conversion rate and other terms will be
determined by negotiations between Microchip and the initial purchaser of the
debentures. Microchip also intends to grant to the initial purchasers of the
debentures the right to purchase up to an additional $100 million principal
amount of debentures solely to cover overallotments.
intends to use up to $625 million of the net proceeds of the offering of the
debentures to repurchase shares of its common stock from institutional
investors in negotiated transactions. Microchip intends to use the remaining
net proceeds, including any proceeds from the exercise of the overallotment
option by the initial purchasers, for future share repurchases under existing
or future repurchase programs under Rule 10b-18 and for general corporate
announcement is neither an offer to sell nor a solicitation of an offer to buy
any of these securities and shall not constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale is unlawful.
debentures have not been registered under the Securities Act of 1933, as
amended, or any state securities laws and may not be offered or sold in
the United States absent registration or an applicable exemption from such
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