Microchip dips on planned $1.35 bln convertible stock sale

Shares of Microchip Technology MCHP.O down 3.8% at $52.50 post-market as co seeks capital to reduce debt

Chandler, Arizona chipmaker announces $1.35 bln 3-yr mandatory convertible preferred stock offering

It plans to use portion of net offering proceeds to pay for capped calls, remainder to repay debt, including commercial paper

JP Morgan, BofA and BNP Paribas are lead joint bookrunners

MCHP has ~$29.3 bln market based on ~537.8 mln shares outstanding

Stock on Weds closed up 0.7% at $54.57

YTD, shares off ~5% vs 7% drop in Philadelphia Semiconductor Index .SOX and 9.5% decline in S&P 500 Tech sector .SPLRCT