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TTM Technologies, Inc., announced that it has repaid and settled its 1.75% Senior Convertible Notes due December 15, 2020 (the “Notes”). TTM had elected a Combination Settlement to settle the Notes, which resulted in repayment of the entire principal value of approximately $250 million dollars in cash and the delivery of approximately 5.3 million shares of Common Stock to the holders of the Notes that requested conversion. TTM exercised previously purchased calls to deliver the shares resulting in no issuance of primary shares and no dilution to shareholders.
“TTM’s financial discipline has delivered strong cash flow in recent years and, along with the strategic decision to divest its Mobility Business Unit, has enabled the company to repay $400 million of its Term Loan B on July 29, 2020 and today repay its convertible bonds,” said Tom Edman, president and CEO. “With a strengthened balance sheet, TTM is well positioned for the future.”
The Notes have settled today, December 15, 2020 and TTM will no longer have convertible bond obligations, however, the warrants issued in conjunction with the Notes remain outstanding and expire ratably from March 2021 through January 2022.