MACOM Technology Solutions refinances convertible notes

By Bobby Samwell • Friday, December 13 15:18 • Permanent Link

Macom Technology Solutions Holdings, Inc. has announced a significant refinancing of its existing convertible notes, with a focus on the details of the transactions. Here are the key facts and figures:

Macom has exchanged approximately $288.8 million in existing convertible notes for approximately $257.7 million in new 0.000% convertible senior notes due 2029 and approximately 1.6 million shares of the company’s common stock.
Additionally, the company will issue approximately $86.6 million in aggregate principal amount of new convertible notes in a private placement to certain investors.
The transactions are expected to have a neutral impact on Macom's pro forma net leverage. After fees and transaction expenses, there will be an increase of the company's cash balance by $61.7 million and an increase of its debt balance by $55.5 million.
The issuance of the new convertible notes will occur pursuant to an indenture related to the new convertible notes, dated on or around December 19, 2024, between the company and U.S. Bank National Association as trustee.
The company's financial advisors in connection with the transactions were J. Wood Capital Advisors LLC and Barclays Capital Inc.

These moves are expected to have a significant impact on Macom's financial position, as it seeks to optimize its capital structure and strengthen its financial position. Following these announcements, the company's shares moved 1.7%, and are now trading at a price of $138.78. For the full picture, make sure to review MACOM Technology Solutions's 8-K report.

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