Silicon Motion Technology (SIMO) priced an upsized private offering of $1.0 billion in convertible senior notes. The deal size increased from the previously announced $800 million. These notes carry a 0.00% interest rate and mature on August 15, 2031. Initial purchasers have a 13-day option to buy an additional $150 million in notes.
The notes feature an initial conversion price of approximately $380.50 per American Depositary Share. This represents a 65% premium over the closing price on August 10, 2026.
Silicon Motion expects net proceeds of roughly $980 million. Total proceeds may reach $1.127 billion if the over-allotment option is fully exercised. The company intends to use the capital for general corporate purposes and to repay outstanding credit agreement balances.