Camtek to offer $400 million in convertible senior notes

MIGDAL HAEMEK, Israel - Camtek Ltd. (NASDAQ:CAMT) (TASE:CAMT), a semiconductor equipment manufacturer with a market capitalization of $3.8 billion and impressive revenue growth of 28% over the last twelve months, announced Thursday its plans to offer $400 million in 0.00% Convertible Senior Notes due 2030 in a private placement to qualified institutional buyers under Rule 144A of the Securities Act. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet.

The semiconductor equipment manufacturer said it would grant initial purchasers an option to buy up to an additional $60 million in notes within a 13-day period after issuance. The notes will mature on September 15, 2030, unless earlier repurchased, redeemed or converted. InvestingPro analysis shows Camtek’s robust financial health with a current ratio of 5.4x, indicating strong ability to meet its short-term obligations. Discover 10+ additional exclusive ProTips and comprehensive financial metrics with InvestingPro’s detailed research report.

According to the company’s statement, the notes will not bear regular interest, and the principal amount will not accrete. Conversion options will be limited to specific conditions before June 15, 2030, after which holders can convert at any time until maturity. Conversions can be settled in cash, Camtek ordinary shares, or a combination at the company’s discretion.

Camtek may redeem the notes for cash under certain tax-related events or after September 20, 2028, if the company’s share price reaches at least 130% of the conversion price for a specified period.

The company intends to use proceeds to repurchase a portion of its existing 0% senior convertible notes due 2026, with the remainder allocated for general corporate purposes, including potential acquisitions, working capital, and research and development. The company’s strong financial performance is reflected in its healthy gross profit margin of 50% and return on equity of 24%, according to InvestingPro data.

Camtek develops and manufactures inspection and metrology equipment for the semiconductor industry, with manufacturing facilities in Israel and Germany and eight offices worldwide.

The notes offering has not been registered under the Securities Act and is being made only to qualified institutional buyers, according to the press release statement.

In other recent news, Camtek Ltd. reported its second-quarter earnings for 2025, achieving an earnings per share (EPS) of $0.79, which aligned with analyst forecasts. The company’s revenue exceeded expectations, reaching $123.3 million compared to the forecasted $121.57 million. Despite this positive revenue result, Camtek’s stock experienced a significant decline of 15.89% in pre-market trading, closing at $81.39. This decline occurred amid broader market volatility and specific operational challenges discussed during the earnings call. These recent developments highlight the company’s ability to surpass revenue expectations while also facing market pressures.

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