** Chipmaker Microchip Technology's MCHP.O shares fall 1% to $75.18

** MCHP kicks off private offering of convertible senior bonds worth $600 million due 2030

** Proceeds from the offering will be used to repay debt and to pay the cost of capped call - derivative transactions employed to help mitigate potential dilution - MCHP

** J. Wood Capital Advisors plans to purchase up to $25 million in shares concurrently with the bond offering in privately negotiated transactions with institutional investors

** Co has 541.1 million outstanding shares, per LSEG data

** MCHP last week forecast Q4 profit below Wall Street estimates as memory shortages start to bite

** 21 of 26 brokerages rate the stock "buy" or higher and five "hold"; median PT is $90

** As of last close, MCHP stock up 19.3% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))