Benzinga | Mar 2, 2021 06:43AM EST

Cohu Seeks To Raise Capital Via 4.5M Secondary Share Sale To Repay Debt

Semiconductor equipment and services provider Cohu Inc (NASDAQ: COHU) has proposed to sell 4.5 million shares in a secondary offering. The underwriters have 30 days to purchase additional shares up to 675,000.

* Based on the last closing price of $45.99, COHU can raise gross proceeds of roughly $238 million if underwriters exercise the option to purchase additional shares.

* The offering proceeds will be utilized to repay outstanding principal on its term loan facility and general corporate purposes.

* Citigroup, Goldman Sachs, and Stifel are the joint book-running managers for the proposed offering. B. Riley Securities, Craig-Hallum Capital Group, and D.A. Davidson are the co-managers for the offering.

* COHU shares have gained 173% in the last six months.

* Price action: COHU shares closed 5.85% higher at $45.99 on Monday.