Indie Semiconductor, Inc. has announced the pricing of its offering of $190 million aggregate principal amount of its 3.50% convertible senior notes due 2029 through a private offering to qualified institutional buyers. The offering was initially set at $175 million but was upsized. The company also granted the initial purchasers an option to purchase up to an additional $28.5 million aggregate principal amount of notes.
The net proceeds from the offering are estimated to be approximately $183.3 million, or approximately $210.9 million if the initial purchasers exercise their option to purchase additional notes in full. The company plans to use a portion of the net proceeds for the cost of capped call transactions and the remainder for working capital, general corporate purposes, and potential acquisitions.
The notes will be convertible into cash, shares of common stock, or a combination of both at an initial conversion rate of 194.6188 shares of common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $5.14 per share of common stock.
Indie also entered into privately negotiated capped call transactions with certain initial purchasers or their affiliates and other financial institutions to cover the number of shares of the company's common stock initially underlying the notes. These transactions are expected to reduce potential dilution to the common stock upon any conversion of the notes and/or offset any cash payments the company may be required to make in excess of the principal amount of converted notes, with such reduction and/or offset subject to a cap initially equal to $8.06 per share.
The notes and the shares of common stock issuable upon conversion have not been registered under the securities act and may not be offered or sold in the United States without registration or an applicable exemption.
About Indie Semiconductor, Inc. Indie Semiconductor, Inc. is headquartered in Aliso Viejo, CA, and focuses on developing innovative, high-performance, and energy-efficient technology for automotive applications. Their solutions can be found in major automotive OEMs worldwide.
As a result of these announcements, the company's shares have moved 8.1% on the market, and are now trading at a price of $4.29. For the full picture, make sure to review indie Semiconductor's 8-K report.
