GT Advanced Technologies Inc. announced plans to offer $125,000,000 aggregate principal amount of convertible senior notes due 2020 (the "Notes") and 12,000,000 shares of its common stock ("Common Stock") in concurrent underwritten registered public offerings (collectively, the "Offerings"). In addition, the Company expects to grant the underwriters a 30-day option to purchase up to an additional $18,750,000 aggregate principal amount of Notes and 1,800,000 shares of Common Stock from the Company, respectively. The Offerings are subject to market and other conditions.
The Notes will pay interest semiannually and will be convertible, under certain circumstances, into cash, shares of Common Stock, or a combination of cash and shares of Common Stock at the Company's election. The Notes will mature on December 15, 2020, unless repurchased or converted in accordance with their terms prior to such date. The Company will not have the right to redeem the Notes prior to maturity. The interest rate and terms of the notes, including the conversion rate of the notes, will be determined by negotiations among the Company and the underwriters.
The Company currently intends to use the net proceeds of the Offerings for working capital and general corporate purposes, which may include the acquisition of companies or businesses and capital expenditures.
Morgan Stanley & Co. LLC and Goldman, Sachs & Co. will act as joint book-running managers and Canaccord Genuity Inc. will act as co-manager for the Offerings. The Company has filed a registration statement (including a base prospectus and related preliminary prospectus supplements) with the Securities and Exchange Commission, or SEC, for the Offerings.
