- Indie Semiconductor, Inc INDI priced $140 million aggregate principal amount of its 4.500% Convertible Senior Notes due 2027 via a private institutional offering.
- The offering was multiple times oversubscribed.
- The Autotech solutions innovator slightly upsized from the originally announced $125 million. The estimated offering proceeds are $135.0 million.
- Purchasers of the notes included funds or accounts managed by Soros Fund Management LLC, Lord Abbett, and Polar Capital.
- Indie has also granted the initial purchasers an option to purchase up to an additional $20 million of notes.
- The interest on the notes will be payable semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2023. The notes will mature on November 15, 2027.
- Indie expects to use a portion of the offering proceeds to repurchase shares and for general corporate purposes.
- Indie may redeem the notes by November 20, 2025, if the last reported price of Indie's shares has been at least 130% of the conversion price.
- The notes will be convertible at an initial conversion price of $8.65 per share, representing a premium of 30% to the $6.655 per share's last reported sale price on November 16, 2022.
- Concurrently with the pricing of the notes, Indie entered into privately negotiated transactions through one of the initial purchasers to repurchase shares.
- Indie held $150.8 million in cash and equivalents and $4.2 million in long-term debt as of September 30.
- Price Action: INDI shares traded higher by 2.18% at $6.80 on the last check Thursday.
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