MACOM Technology Solutions has announced a significant refinancing of its existing convertible notes. The company entered private agreements to exchange approximately $288.8 million of its 0.25% convertible senior notes due 2026 for $257.7 million of new zero-coupon convertible notes due 2029 and 1.6 million shares of common stock. Additionally, MACOM will issue $86.6 million in new zero-coupon notes through a private placement. The refinancing is expected to have a neutral impact on MACOM’s leverage while boosting its cash reserves by $61.7 million. The transactions are set to close by December 19, 2024, subject to standard conditions.
• Key Details: Exchanged $288.8M in 2026 notes for $257.7M in 2029 notes with a 0% coupon and 27.5% conversion premium.
• Impact: Neutral leverage impact, $61.7M cash increase, and $55.5M debt rise.
• Timeline: Transactions expected to close on December 19, 2024.
