Key facts
- STMicroelectronics plans to raise $1.5 billion through exchangeable debt.
- The company's shares have tripled in value this year.
- The debt offering includes tranches maturing in 2031 and 2033.
- Funds will redeem $750 million in zero-coupon notes and cover general corporate needs.
STMicroelectronics NV is preparing to raise $1.5 billion by issuing debt that is convertible into equity. This strategic move by the semiconductor manufacturer comes on the heels of its stock price experiencing a threefold increase over the course of the current year. The company is offering the convertible bonds in two tranches, one due in 2031 and the other in 2033. The proceeds will be used for the early redemption of $750 million zero-coupon notes maturing in 2027, with the remainder allocated for general corporate purposes.