Infineon Technologies : Makes Successful Debut on the Hybrid Bond Market and raises EUR 1.2 billion to re-finance the Cypress acquisition
September 25, 2019 at 02:13 pm EDT
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Munich, Germany - 25 September 2019 - Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) today successfully launched and priced its inaugural EUR 1.2 billion dual-tranche hybrid bond. The proceeds from the issuance will be used to re-finance the proposed Cypress acquisition and for general corporate purposes.
'With the hybrid bond issuance, which is following our share placement in June, we have taken a further significant step in re-financing and de-risking the Cypress transaction,' said Dr. Sven Schneider, Chief Financial Officer of Infineon. 'The instrument is contributing substantially to the envisaged equity portion of the overall financing. The issuance clearly shows investors' trust in the prospects of Infineon as well as the future combined company and puts us in a position of great flexibility with respect to timing and instruments for the remaining re-financing needed.'
The hybrid bond issuance consists of two EUR 600 million perpetual tranches. Tranche 1 has a non-call period from issuance of 5.5 years and a fixed coupon of 2.875% until first reset date. Tranche 2 has a non-call period of 8.5 years and a fixed coupon of 3.625%. The bonds will be listed on the Luxemburg Stock Exchange.
The order book for both hybrid tranches was well oversubscribed enabling a diversified distribution among international institutional investors including fund managers, insurance companies, pension funds and banks.
S&P Global Ratings has assigned an issue rating of BB+ to the two tranches of the hybrid note. The bonds are expected to receive intermediate equity content (50% equity credit), once Infineon closes the acquisition of Cypress.
The offer is being made exclusively to qualified investors within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 and there will be no public offering of the hybrid bonds in any jurisdiction.
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Infineon Technologies AG published this content on 25 September 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 September 2019 18:12:02 UTC
Infineon Technologies AG is one of the world's leading manufacturers of semiconductors. The group's products include power semiconductors, sensors, microcontrollers, digital, mixed-signal and analog ICs, discrete semiconductor modules, switches, interface ICs, motor-controlling ICs, RF power transistors, voltage regulators, and electronic safety components. Net sales break down by area of activity as follows:
- automotive (50.5%): semiconductor products used in the automotive industry, and memory products for specific applications for automotive, industrial, information technologies, telecommunications and consumer electronics.
- power & sensor systems (23.3%): semiconductors for energy-efficient power supplies, mobile devices, mobile phone network infrastructures, human-machine interaction as well as applications with special demands on their robustness and reliability.
- industrial power control (13.5%): semiconductor products for the conversion of electrical energy for small, medium and high-power applications, used in the manufacturing, the low-loss transmission, the storage and the efficient use of electrical energy;
- connected secure systems (12.6%): semiconductors for networked devices, card-based applications, and government documents; microcontrollers for industrial, entertainment, and household applications, components for connectivity systems, various customer support systems;
- other (0.1%).
Net sales are distributed geographically as follows: Germany (12.4%), Europe/Middle East/Africa (14.4%), China/Hong Kong/Taiwan (32.3%), Japan (10.5%), Asia/Pacific (15.9%), the United States (12.1%) and Americas (2.4%).