Microchip rebounds after boosted $800 mln convertible bonds sale

Microchip Technology

10/02/2026 15:02

** Microchip Technology MCHP.O shares up 3.2% at $76.78 early Tues and on track to snap three-session losing streak after above-target capital raise

** Chandler, Arizona chipmaker early Tues announces pricing private offering of $800 mln 0% 4-yr convertible bonds (CBs)

** Offering size increased from $600 mln; initial conversion price of $104.17 is 40% premium to stock's last close of $74.41

** MCHP intends to use net offering proceeds to repay notes outstanding under its commercial paper program

** Co plans to use about $60.5 mln of proceeds to pay for capped call transactions; initial cap price set at $148.82, double stock's last close

** J. Wood Capital Advisors to purchase $25 mln of shares to facilitate hedging with investors in the CBs

** Avg rating among 26 analysts on the stock is "buy"; median PT of $90 up from $78.50 a month ago, per LSEG data

** With the move on the session, MCHP shares up ~20% YTD. In comparison, Philadelphia Semiconductor Index .SOX up ~15% so far this year, while S&P 500 Tech sector .SPLRCT down 1.3%

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))