Infineon issues $890 million in new bonds
By Jack Robertson
EBN
(01/08/02, 01:51:01 PM EST)
Infineon Technology AG Tuesday issued a new $890 million (1 billion euros) convertible bond issue to raise capital for yet-undesignated needs.
If all bonds are sold, the latest offering would almost triple Infineon's current debt of 368 million euros.
An Infineon spokesman said the increased debt is not of great concern, since the company already had a low level of indebtedness. He said Infineon also has a positive cash flow of 250 million euros at the end of the last quarter on Dec. 31.
The bonds were issued at the same time that former parent Siemens AG is selling another 40 million shares of Infineon stock, with investment banker Goldman Sachs handling both issues. After sale of the shares, Siemens' stake in Infineon will be reduced to 41%.
The Infineon spokesman said the firm had been authorized at the last stockholder's meeting to float up to 1 billion Euros in new securities, and it was decided to make the offering Tuesday to be concurrent with the stock sale by Siemens.
Asked if the proceeds of the bond offering would be used for acquisition of another chip company, the spokesman only said no decision has been made yet for use of the funds.
The bonds are convertible after 5 years into Infineon common stock at the rate of 1.411 shares per bond. The bonds carry an interest rate of 4.25% per annum.
www.ebnews.com/story/OEG20020108S0052
Nowonder
By Jack Robertson
EBN
(01/08/02, 01:51:01 PM EST)
Infineon Technology AG Tuesday issued a new $890 million (1 billion euros) convertible bond issue to raise capital for yet-undesignated needs.
If all bonds are sold, the latest offering would almost triple Infineon's current debt of 368 million euros.
An Infineon spokesman said the increased debt is not of great concern, since the company already had a low level of indebtedness. He said Infineon also has a positive cash flow of 250 million euros at the end of the last quarter on Dec. 31.
The bonds were issued at the same time that former parent Siemens AG is selling another 40 million shares of Infineon stock, with investment banker Goldman Sachs handling both issues. After sale of the shares, Siemens' stake in Infineon will be reduced to 41%.
The Infineon spokesman said the firm had been authorized at the last stockholder's meeting to float up to 1 billion Euros in new securities, and it was decided to make the offering Tuesday to be concurrent with the stock sale by Siemens.
Asked if the proceeds of the bond offering would be used for acquisition of another chip company, the spokesman only said no decision has been made yet for use of the funds.
The bonds are convertible after 5 years into Infineon common stock at the rate of 1.411 shares per bond. The bonds carry an interest rate of 4.25% per annum.
www.ebnews.com/story/OEG20020108S0052
Nowonder
