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STMicroelectronics Launches $1.5 Billion Convertible Bond Offering

BY MT Newswires | CORPORATE | 05:15 AM EDT

05:15 AM EDT, 06/16/2026 (MT Newswires) -- STMicroelectronics (STM) said Tuesday it launched a $1.5 billion offering of senior unsecured convertible bonds and plans to redeem its outstanding $750 million zero-coupon convertible bonds due 2027.

The company said the new offering consists of two tranches: five-year bonds due 2031 and seven-year bonds due 2033, with a minimum size of $500 million per tranche.

The 2031 bonds will carry an annual interest rate of 0% to 0.5%, while the 2033 bonds will pay 0.625% to 1.125%, the company said, adding that both will be issued and redeemed at 100% of principal unless converted, redeemed early, or repurchased.

STMicroelectronics (STM) said the conversion prices are expected to be set at premiums of about 47.5% to 52.5% for the 2031 bonds and 50% to 55% for the 2033 bonds relative to its share price at pricing.

It added that the proceeds will be used for general corporate purposes, including the early redemption of its 2027 convertible bonds.

The new bonds are expected to settle around June 23, and it plans to seek their listing on the Frankfurt Stock Exchange's Open Market, the company said.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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