Newport Beach-based chipmaker Conexant Systems Inc. said Wednesday it is selling nearly $250 million worth of bonds and stocks to pay off debt due in 2026.
The company said it has sold $175 million worth of bonds paying interest of 11.25% and due in 2015.
It also plans to sell 14 million shares in the next few days. Based on Conexant’s current stock price, the offering is worth about $65 million before fees.
The company plans to use the proceeds from the bond and stock sales to pay off $232 million in debut due 2026. The bonds have an option for holders to demand repayment early next year and an interest rate of 4%.
In the past year, Conexant has been reworking debt and reorganizing operations.
In July, Conexant sold $20 million worth of stock. In January, the company applied for standing approval to sell up to $100 million worth of its shares, a prelude to this week’s stock offering.
The company in January struck a deal with Santa Ana-based developer City Ventures LLC to sell 25 acres near its headquarters for $26 million.
City Ventures now is asking for an undisclosed lower price on the land, Conexant said Wednesday. The deal, expected to close this month, now is being delayed, according to the company.
Conexant’s restructuring efforts have been welcomed on Wall Street with its shares up 80% in the past six months.
But word of the latest stock sale caused Conexant’s shares to fall about 3% to a market value of about $300 million in midmorning New York trading.
