Cohu, Inc. has announced its plan to offer $200.0 million aggregate principal amount of convertible senior notes due 2031 in a private offering. This offering includes an option for the initial purchasers of the notes to purchase up to an additional $30.0 million aggregate principal amount of the notes. The notes will be cohu’s senior unsecured obligations and will mature on January 15, 2031, unless earlier converted, redeemed, or repurchased.
The company intends to use the net proceeds from this offering to pay the cost of the capped call transactions and for general corporate purposes. If the option to purchase additional notes is exercised, cohu plans to use a portion of the net proceeds from the sale of such additional notes to enter into additional capped call transactions and any remaining net proceeds for general corporate purposes.
In connection with the offering, cohu expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the notes or their respective affiliates and/or other financial institutions. These capped call transactions are anticipated to reduce the potential dilution to cohu’s common stock upon any conversion of the notes and/or offset any potential cash payments cohu is required to make in excess of the principal amount of converted notes, subject to a cap.
The company also mentioned that the offer and sale of the notes and any shares of cohu’s common stock issuable upon conversion of the notes have not been registered under the securities act, or any state securities law.
Cohu is a global technology leader supplying test, automation, inspection, and metrology products and services to the semiconductor industry. The company's differentiated and broad product portfolio enables optimized yield and productivity, accelerating customers’ manufacturing time-to-market. Following these announcements, the company's shares moved -1.6%, and are now trading at a price of $22.78. For the full picture, make sure to review COHU INC's 8-K report.
