Advanced Energy Prices $500 Mln Private Offering Of Sr. Notes

(RTTNews) - Advanced Energy Industries, Inc. (AEIS) Friday priced the private offering of $500 million principal amount of 2.50% Convertible Senior Notes due 2028. The Notes have been offered to institutional buyers.

The initial conversion rate is 7.2747 shares per $1,000 principal amount of notes, which is equivalent to an initial conversion price of about $137.46 per share, a premium of about 30% over the closing price of Advanced Energy of $105.74 per share on September 7.

The company intends to use the net proceeds of about $487.9 million from the offering to fund acquisitions, repay debt, and for general corporate purposes.

Additionally, Advanced Energy plans to use the proceeds to enter into convertible note hedge and warrant transactions with initial purchasers or other financial institutions.

In connection with this offering, the company repurchased approximately $40 million of its shares from purchasers of the notes.

The offering of the notes and the convertible hedge and warrant transactions are expected to close on September 12.