Microchip Prices $1.35 Bln Of Depository Shares At $50/Shr

(RTTNews) - Microchip Technology Incorporated (MCHP), a provider of embedded control solutions, Friday priced its public offering $1.35 billion of depository shares at $50 per share.

Each depository share represents 1/20th interest in a share of newly issued 7.50% Series A Mandatory Convertible Preferred Stock, par value $0.001 per share.

Microchip has granted underwriters a 13-day option to purchase up to an additional $135 million of depositary shares.

About $50.1 million from the net proceeds of $1.32 billion will be used to pay the cost of the capped call transactions which the company has entered into with certain financial institutions in the connection with the pricing of the depository shares.

The company expects to enter into additional capped call transactions using a portion of proceeds obtained if underwriters exercise their option to purchase additional depositary shares. Microchip intends to use the remaining net proceeds to repay existing debt, including notes outstanding under its commercial paper program.