GT Advanced eyes USD 254m from bond, stock sale

Dec 5, 2013 - US solar and electronics manufacturing equipment supplier GT Advanced Technologies (NASDAQ:GTAT) expects to raise USD 254 million (EUR 186m) net from the sale of 2020 convertible notes and 8.65 million of common shares

The net proceeds will go to replenish working capital and cover general corporate needs, which could include the acquisition of companies or businesses and capital expenditures, the company said Thursday.

GT Advanced set a price per share of USD 8.65 on its common stock offering. It has set a coupon of 3% on its USD-190-million issue of convertible senior notes, maturing on December 15, 2020. The notes can convert into cash, common shares or a combination of the two at an initial rate of 82.576 shares per USD 1,000 worth of notes, equal to a conversion price of about USD 12.11 a share. Redemption before maturity will not be possible.

The underwriters of the deals have 30 days to buy up an additional USD 24 million in notes and 1.29 million of shares. If fully exercised, the over-allotment option will boost the total net proceeds to USD 288 million.

Morgan Stanley & Co LLC and Goldman Sachs & Co will act as joint bookrunners of the two transactions.

(USD 1.0 = EUR 0.734)

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