On May 31, 2024, Microchip Technology (Nasdaq: MCHP) completed an offering of $1.25 billion aggregate principal amount of convertible senior notes due 2030 in a private transaction. The offering amount included the exercise in full of the option that Microchip had granted to the initial purchasers to purchase up to an additional $150 million of notes. In connection with the offering, Microchip entered into privately negotiated capped call transactions with one or more of the initial purchasers and other financial institutions.
Microchip utilized a portion of the net proceeds of the offering to cover the expenses of capped call transactions with the option counterparties, and the remaining net proceeds will be used to repay existing debt.
Wilson Sonsini represented Microchip in the transaction. The Wilson Sonsini team that represented Microchip included:
Corporate
Rob Suffoletta
Nathan Robinson
Emily Coskey
Tamara Labanowski
Corporate Finance
Erik Franks
Mike Rosati
Katie Barnes
Jinny Park
Derivatives
Andrew Ralston
Alex Weber
Roshanne Arathoon
For more information, please see Microchip’s pricing news release.