Impinj plans to offer $150 million in convertible senior notes

SEATTLE - RAIN RFID provider Impinj, Inc. (NASDAQ:PI), a $5.4 billion market cap company that has seen its stock surge nearly 94% over the past six months according to InvestingPro data, announced Tuesday its intention to offer $150 million in convertible senior notes due 2029 to qualified institutional buyers in a private placement.

The company plans to grant initial purchasers an option to buy an additional $25 million in notes within a 13-day period after issuance. The notes will be senior, unsecured obligations with interest payable semi-annually and will mature on September 15, 2029, unless earlier redeemed, repurchased or converted.

According to the press release statement, Impinj intends to use the net proceeds to exchange a portion of its outstanding 1.125% Convertible Senior Notes due 2027 for cash and shares of its common stock. The company plans to use cash on hand to pay for capped call transactions and offering expenses. InvestingPro data shows Impinj maintains strong liquidity with a current ratio of 11.64, indicating robust ability to meet short-term obligations.

In connection with the notes offering, Impinj expects to enter into privately negotiated capped call transactions with initial purchasers or their affiliates. These transactions are designed to reduce potential dilution to Impinj’s common stock upon conversion of the notes or offset cash payments exceeding the principal amount of converted notes.

The notes will be convertible into cash, shares of Impinj’s common stock, or a combination at the company’s election. Specific terms including interest rate and initial conversion rate will be determined at pricing.

The securities will only be offered to qualified institutional buyers under Rule 144A of the Securities Act. Neither the notes nor the potentially issuable shares upon conversion have been registered under the Securities Act or other securities laws, making them unavailable for sale in the United States except under applicable exemptions.

Impinj specializes in RAIN RFID technology that connects everyday items to the Internet of Things. With annual revenue of $359 million and operating with moderate debt levels, the company appears overvalued according to InvestingPro analysis, which offers 14 additional investment tips and a comprehensive Pro Research Report for deeper insights into the company’s financials and growth prospects.

In other recent news, Impinj Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.80, compared to the forecasted $0.71. The company also reported a revenue of $97.9 million, exceeding the anticipated $93.75 million. Despite a 4% year-over-year revenue decline, the results were better than Wall Street’s expectations of an 8.5% decline. This performance occurred amidst mixed conditions in retail apparel and logistics end markets. Following these results, Needham raised its price target on Impinj to $165 from $115, maintaining a Buy rating. The firm’s strong execution was highlighted as a reason for the increase in the price target. These developments reflect recent positive trends for Impinj.

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