Skyworks said holders of Qorvo’s two note issues tendered the vast majority of the debt by the early participation deadline, clearing the consent threshold for amendments to both indentures.
For Qorvo’s 4.375% senior notes due 2029, investors tendered $760.095 million of the $850 million outstanding, or 89.42%. For the 3.375% senior notes due 2031, holders tendered $651.334 million of the $700 million outstanding, or 93.05%.
Skyworks said it received the requisite consents for both series and that Qorvo entered into supplemental indentures on June 11 to implement the proposed changes. Those amendments eliminate substantially all restrictive covenants, certain affirmative covenants and certain events of default, but will not become operative until the merger closes or the exchange settles, depending on the specific amendment.
The early participation results also determine the cash-free principal incentives embedded in the exchange. Holders who tendered by the early date and are accepted for exchange will receive $950 of new Skyworks notes plus an early participation premium of $50 per $1,000 principal amount. The premium works out to about $2.80 per $1,000 for the 2029 notes and about $2.69 per $1,000 for the 2031 notes.
The 2029 exchange offer allows up to $850 million of new Skyworks 4.375% notes due 2029, while the 2031 offer allows up to $700 million of new Skyworks 3.375% notes due 2031. The exchange offers are scheduled to expire Sept. 1, 2026. Today the company's shares have moved 0.22% to a price of $72.89. Check out the company's full 8-K submission here.
