Tuesday, February 27, 2007

Skyworks to raise $200M in notes sale

Woburn mobile semiconductor maker Skyworks Solutions Inc. expects to sell approximately $200 million worth of convertible subordinated notes to institutional buyers, officials said.

The offering, which is subject to market conditions, will come in two phases, officials say. One is for $100 million, due in 2010, and a second for approximately the same amount, will be due in 2012.

The notes will be convertible into cash, shares of the company's common stock or a combination of shares and cash, at its option, at an initial price of $9.52 per share. The sale of the notes is expected to close March 2.

Skyworks intends to use the net proceeds from the offering for working capital and general corporate purposes, which may include capital expenditures, funding potential future acquisitions, the repurchase of up to $50 million of its common stock and repaying some or all of the outstanding principal amount and accrued interest on its outstanding indebtedness, according to company officials.

In its most recent fiscal year, ending September 2006, Skyworks reported a net loss of $88.1 million on revenue of $773.7 million.

The 4,000-employee company makes chips for the wireless communications industry and has been rumored to be a main supplier of components to Apple Inc.'s new iPhone, though company executives have declined to comment on any such relationship.