STMicroelectronics Announces $1.5 Billion Convertible Bonds Offering

STMicroelectronics has revealed plans to launch a dual-tranche offering of new convertible bonds valued at $1.5 billion and announced the early redemption of its $750 million 2027 convertible bonds. The new bonds will consist of two tranches, maturing in 2031 and 2033, with interest rates ranging from 0.00% to 0.50% for the 2031 bonds and 0.625% to 1.125% for the 2033 bonds. These bonds offer conversion options into cash or shares.

Funds raised will be used for general corporate purposes and to redeem the 2027 bonds. The existing 2027 bondholders can convert their bonds before July 1, 2026, at a prevailing price of $45.10 per share. BNP PARIBAS, J.P. Morgan, and others will coordinate the offering. Final terms will be confirmed soon, and trading will commence within 90 days post-settlement on the Frankfurt Stock Exchange.