Cohu Inc. Announces $200 Million Private Offering of Convertible Senior Notes to Enhance Strategic Flexibility

Reuters
09/24
Cohu Inc. Announces $200 Million Private Offering of Convertible Senior Notes to Enhance Strategic Flexibility

Cohu Inc. has announced an offering of convertible senior notes, aimed at raising capital to enhance strategic flexibility. The Notes are being offered to qualified institutional buyers as per Rule 144A under the Securities Act. As part of this offering, Cohu plans to engage in privately negotiated capped call transactions with initial purchasers or their affiliates. These transactions are designed to mitigate potential dilution to Cohu's common stock upon conversion of the Notes and manage any excess cash payments over the principal amount of converted Notes, subject to a cap. Part of the proceeds from the offering will be used to purchase these capped calls, ensuring protection against dilution up to a targeted 100% premium to the recent sale price of Cohu's common stock. Additionally, the option counterparties are expected to engage in derivative transactions or purchase Cohu's stock to establish initial hedges, potentially influencing the market price of Cohu's stock or the Notes.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Cohu Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20250923123551) on September 23, 2025, and is solely responsible for the information contained therein.

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