Infineon Successfully Completes $935 Million US private placement

Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) has successfully completed a $935 million US private placement of notes. This is the first such transaction in the company’s history. The proceeds of the transaction will replace the five-year US Dollar term loan granted by banks to Infineon in August 2014 for the acquisition of International Rectifier Corporation.

“Infineon’s successful US private placement debut underlines our broad access to financing sources and significantly optimizes our debt maturity profile,” said Dominik Asam, Chief Financial Officer of Infineon. “The long term funding reflects the trust of the investors in the excellent prospects and financial stability of Infineon”.

A broad and diversified group of 28 institutional investors participated in the transaction consisting of three tranches: a $350 million tranche with an eight year maturity, a $350 million tranche with a ten year maturity and a $235 million tranche with a twelve year maturity.

The Infineon transaction represents the largest cross-border US private placement in more than two years. Bank of America Merrill Lynch and Goldman Sachs acted as Joint Lead Agents on the transaction.