STMicroelectronics Raises $1.5B with 5-Year Zero-Coupon and 7-Year 0.625% Convertible Bonds
STM•STMicroelectronics priced a $1.5B dual-tranche convertible bond offering split into $750M 5-year (zero-coupon) and $750M 7-year (0.625% annual) tranches maturing in 2031 and 2033. Net proceeds will fund general corporate purposes and redeem the $750M zero-coupon convertible due 2027.
1. Offering Details
STMicroelectronics has priced a $1.5 billion dual-tranche senior unsecured convertible bond offering comprising $750 million of zero-coupon bonds maturing June 23, 2031, and $750 million of 0.625% bonds maturing June 23, 2033, both issued at par.
2. Conversion Terms
Initial conversion prices are set at $119.9813 for the 2031 bonds (55% premium) and $121.9165 for the 2033 bonds (57.5% premium) over the volume-weighted average share price on the Euronext Milan Market at pricing.
3. Use of Proceeds and Timeline
Net proceeds will support general corporate purposes, including early redemption of $750 million of zero-coupon convertibles due July 2027. Settlement is expected on June 23, 2026, with bonds targeted for Frankfurt trading within 90 days and a 90-day share lock-up post-closing.
