GT Advanced Technologies unveils pricing of USD 205m convertible notes

Sep 25, 2012 - US solar equipment maker GT Advanced Technologies Inc (NASDAQ:GTAT) said Tuesday it had priced its offering of USD 205 million (EUR 158m) convertible senior notes that will mature in October, 2017.

The notes will bear an annual interest of 3%, which will be paid twice a year, on April 1 and October 1. They can be converted into cash, shares or a combination of both under certain circumstances at an initial conversion rate of 129.7185 shares per USD 1,000 principal amount of notes. This represents an initial conversion price of about USD 7.71. GT Advanced Technologies will not be allowed to redeem the notes before their maturity.

The underwriters have been given an option to buy up to USD 15 million of additional notes.

Initially, GT Advanced Technologies planned to issue up to USD 175 million of 2017 convertible senior notes with an over-allotment option of up to USD 26.25 million.

Proceeds from the offering will be used for general corporate purposes, potentially including acquisitions, debt repayment and refinancing, working capital and capital expenditures.

GT Advanced Technologies has also agreed convertible note hedge deals with financial institutions, some of which affiliates of the underwriters, to limit its exposure in relation to the notes to rises in its stock price. Separately, the company has agreed warrant deals with those institutions at an exercise price for the warrants of about 67.5% above the closing price of the company's shares on September 24. It said issuance of the warrants could be dilutive to its stock to the extent that the market price outstrips the warrants exercise price.

(USD 1.0 = EUR 0.773)

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