STMicroelectronics Prices US$1.5 Billion Dual-Tranche Offering of New Convertible Bonds

STMicroelectronics N.V. announced the pricing of a US$1.5 billion offering of senior unsecured bonds convertible into new or existing ordinary shares. The offering consists of two tranches: US$750 million with a 5-year maturity (due 2031) and US$750 million with a 7-year maturity (due 2033). The 2031 bonds will be non-interest bearing, while the 2033 bonds will carry an annual interest rate of 0.625%. The net proceeds from the offering will be used for general corporate purposes, including the early redemption of outstanding US$750 million Zero Coupon Convertible Bonds due 2027. The conversion price for the 2031 bonds is set at a premium of 55% over the volume-weighted average share price, and for the 2033 bonds, it is set at a premium of 57.5%. Settlement is expected around June 23, 2026. The company has committed to a 90-day lock-up period post-closing. This offering is part of STMicroelectronics' ongoing financial strategy to optimize its capital structure.