Xilinx prices sale of $520 million worth of 2.625 percent convertible senior notes due 2017By AP
Friday, June 4, 2010
Xilinx prices $520M convertible notes sale
SAN JOSE, Calif. — Chip maker Xilinx Inc. said Friday it has priced $520 million worth of convertible senior notes due in June 2017.
The San Jose, Calif., company said the sale is expected to close on June 9. Xilinx will grant initial purchasers the right to buy up to an additional $80 million worth of notes if demand exceeds initial supply.
Interest at a rate of 2.625 percent per year will be paid semi-annually, Xilinx said in a statement. The initial conversion rate for the notes equal to a price of about $30.29 per share, representing a 20 percent premium to Xilinx’s closing stock price Thursday of $25.24.
It estimates net proceeds from the offering of $452.9 million, after discounts and expenses, and intends to use most of that to buy back stock.
Xilinx shares rose 20 cents to $25.44 in midday trading.