STMicroelectronics N.V. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K, dated October 11, 2017, reports on a corporate action regarding STMicroelectronics N.V.'s debt obligations. The filing serves as a notice of early redemption for the company's US$400,000,000 1.00% Convertible Bonds due 2021. The company is a global semiconductor leader with 2016 net revenues of US$6.97 billion.
Key Financial Metrics
- Debt Instrument: US$400,000,000 1.00% Convertible Bonds due 2021 (ISIN: XS1083957024).
- Outstanding Principal: As of October 10, 2017, the aggregate principal amount outstanding was US$59.6 million.
- Redemption Price: Principal amount plus accrued but unpaid interest up to, but excluding, November 10, 2017.
- Conversion Price: US$12.3622 per share.
- Share Price: Closing price on October 10, 2017, was EUR 16.65 on the Mercato Telematico Azionario.
The filing text does not provide current period revenue, profit, cash flow, or liquidity metrics beyond the 2016 historical revenue figure.
Material Changes
The company has exercised its option to redeem all outstanding bonds because more than 85% of the original principal amount has been converted, purchased, or redeemed. Following the redemption on November 10, 2017, the Bonds due 2021 will be cancelled, resulting in zero outstanding bonds for this series.
Outlook, Risks, and Contingencies
Redemption Notice: The optional redemption date is set for November 10, 2017.
Conversion Option: Bondholders may elect to convert their bonds into shares, cash, or a combination thereof instead of accepting redemption. To be valid, the conversion date must fall on or before October 26, 2017.
Regulatory Disclosure: The press release contains information that qualified as inside information under Article 7(1) of the EU Market Abuse Regulations.
Key Facts for Investor Verification
- Verify the final conversion deadline of October 26, 2017, for bondholders wishing to convert rather than be redeemed.
- Confirm the exact accrued interest calculation for the redemption payment due on November 10, 2017.
- Monitor the company's capital structure post-redemption to confirm the complete cancellation of the 2021 bond series.
- Review the company's website (www.st.com) for the full Optional Redemption Notice.