Semtech announces $300M in debt placement to help finance Sierra acquisition
The Camarillo-based semiconductor manufacturer Semtech will raise up to $300 million in a private debt placement to help pay for its pending acquisition of Sierra Wireless.
The company announced a $250 million in convertible senior notes on Oct. 6 and upped the total to $300 million the next day.
The notes will pay 1.625% interest per year and will mature on Nov. 1, 2027.
Semtech said it expected the sale to close on or around Oct. 12. It will raise around $290 million for the company, after deducting expenses.
About 90% of the proceeds will go toward financing the purchase of Sierra Wireless. Semtech announced its purchase of the Canadian company in August, at a price of $1.2 billion. Like Semtech, Sierra Wireless specializes in hardware for Internet-connected devices that aren’t traditional computers of smartphones, a space known as the “Internet of Things.”