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© Infineon Business | September 30, 2019

Infineon raises €1.2 billion to re-finance the Cypress acquisition

Infineon Technologies AG announces that it has successfully launched and priced its inaugural EUR 1.2 billion dual-tranche hybrid bond.

The German chip maker says that it will use the proceeds from the issuance to re-finance its proposed acquisition of Cypress 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,” Dr. Sven Schneider, Chief Financial Officer of Infineon, explains in a press release. “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.
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October 11 2019 3:09 pm V14.5.0-2