Shares of Indie Semiconductor (NASDAQ:INDI) fell 14.9% to $2.69 in premarket trading on Wednesday, marking a nine-month low after the company announced a new private placement of convertible bonds.
The advanced driver assistance systems sensor developer said early Wednesday that it had priced a $150 million private offering of 4% convertible bonds due in 2031.
The initial conversion price was set at $3.87, representing a 22.5% premium to the stock’s previous closing price of $3.16.
Indie Semiconductor said it plans to allocate the net proceeds primarily to repurchase roughly $104 million of its existing 4.50% convertible bonds maturing in 2027. The remaining funds will support working capital needs and other corporate purposes, including potential acquisitions.
Based in Aliso Viejo, California, the company currently has a market capitalization of around $700 million.
The stock had already declined 7% on Tuesday and is down about 10.5% since the start of the year.