ALISO VIEJO, Calif. - indie Semiconductor, Inc. (NASDAQ: INDI), a provider of automotive semiconductor solutions with a current market capitalization of $1.06 billion, announced today its intention to offer $175 million aggregate principal amount of Convertible Senior Notes due in 2029. According to InvestingPro analysis, the company appears undervalued at its current trading price of $5.28. The offering is aimed at qualified institutional buyers, relying on Rule 144A under the Securities Act of 1933.Want deeper insights? InvestingPro subscribers have access to 8 additional key insights about INDI, including detailed financial health scores and comprehensive valuation metrics.
The company is also expected to grant an option to purchase up to an additional $26.25 million in notes within a 13-day period starting from the issuance date. The notes, which are senior unsecured obligations, will be convertible into cash, indie's Class A common stock, or a combination of both, at indie's discretion. Interest payments are scheduled semiannually starting June 15, 2025, with the notes maturing on December 15, 2029, unless repurchased, redeemed, or converted earlier.
In conjunction with the note pricing, indie plans to enter into capped call transactions to minimize dilution from the conversion of the notes or to offset cash payments above the principal amount. These transactions may affect indie's common stock market price, as the option counterparties engage in various derivative transactions and may buy or sell indie's common stock in secondary market transactions.
The proceeds from the offering will be used to pay for the capped call transactions, with the remaining funds allocated for working capital and general corporate purposes, which could include potential acquisitions, although no agreements are currently in place.
The notes and the shares of common stock that may be issued upon conversion have not been registered under the Securities Act or any state securities laws and will not be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.
Based in Aliso Viejo, California, indie Semiconductor focuses on developing semiconductor, photonics, and software platforms for Advanced Driver Assistance Systems (ADAS), in-cabin user experience, and vehicle electrification applications. The company's products are utilized by Tier 1 partners and various automotive OEMs globally. InvestingPro data shows the company has achieved impressive revenue growth of 23% over the last twelve months, maintaining a healthy current ratio of 2.39 which indicates strong short-term liquidity.Discover the complete financial story with InvestingPro's exclusive Research Report, part of our coverage of 1,400+ US stocks, offering deep-dive analysis and actionable insights for informed investment decisions.
This press release is issued following Rule 135c under the Securities Act and is based on a press release statement. It is not an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, indie Semiconductor has reported a third-quarter revenue of $54 million, marking a 3.1% sequential growth and surpassing its previous guidance. The company's non-GAAP gross profit was $27.2 million, resulting in a gross margin of 50.4%. However, the company also reported a non-GAAP operating loss of $16.8 million and a net loss of $17.7 million.
Looking ahead, indie Semiconductor projects a promising fourth quarter with revenue estimates between $56 million and $60 million, indicating over 7% sequential growth. The company's strategic backlog has grown to $7.1 billion, with Advanced Driver Assistance Systems (ADAS) constituting over 72% of the backlog.
Despite some delays impacting the growth rate, the company is optimistic about its long-term outlook with a focus on ADAS and electrification innovation. Notably, indie Semiconductor has secured recent design wins with major Original Equipment Manufacturers (OEMs) such as Porsche and General Motors (NYSE:GM). These developments are part of the company's ongoing efforts to leverage its innovative product portfolio and operational excellence to drive growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.