Semtech falls after announcing $350 mln convertible bonds sale

Semtech

06/10/2025 21:47

** Semiconductor supplier Semtech SMTC.O shares fall 1% post-market to $67.39 as it seeks capital raise to refinance debt

** Camarillo, California-based firm announces private offering of $350 mln 0% convertible bonds (CBs) due 2030

** Co plans to use net offering proceeds, together with its common shares, for exchanges of its 1.625% CBs due 2027 and its 4% CBs due 2028, and repay a portion of term loans

** It also intends to use a portion of proceeds to pay cost of capped calls, derivative transactions employed to help offset potential dilution

** Co has nearly $6 bln market cap

** SMTC ended Mon down 5.3% at $68.17, cutting YTD gain to 10%

** Of 16 analysts covering SMTC, recommendation breakdown is 14 "strong buy" or "buy" and 2 "hold"; median PT is $65, per LSEG data

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

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