Benzinga | Mar 22, 2021 12:07PM EDT

MACOM Shares Are Trading Lower On Proposal To Raise $400M Via Institutional Debt Offering For Refinancing

Semiconductor product supplier MACOM Technology Solutions Holdings Inc (NASDAQ: MTSI) proposed to offer $400 million convertible senior notes due 2026 in an institutional offering.

* MACOM expects to grant the initial note purchaser a 13-day period to procure additional $60 million notes.

* The offering proceeds would be utilized for partial repayment of outstanding term loans.

* The company would be utilizing $100 million of its available cash and cash equivalents to repay a portion of its outstanding term loans due May 2024.

* MACOM's cash and cash equivalents amounted to $128.7 million as of January 1, 2021. The company's long-term debt balance stood at $651 million.

* MTSI stock has gained 271% last year.

* Price action: MTSI shares traded lower by 8.30% at $57.99 on the last check Monday.