Microchip Technology dips on planned $600 million convertible bonds offering

Chipmaker Microchip Technology's MCHP.O shares fall 1% to $75.18

MCHP kicks off private offering of convertible senior bonds worth $600 million due 2030

Proceeds from the offering will be used to repay debt and to pay the cost of capped call - derivative transactions employed to help mitigate potential dilution - MCHP

J. Wood Capital Advisors plans to purchase up to $25 million in shares concurrently with the bond offering in privately negotiated transactions with institutional investors

Co has 541.1 million outstanding shares, per LSEG data

MCHP last week forecast Q4 profit below Wall Street estimates as memory shortages start to bite

21 of 26 brokerages rate the stock "buy" or higher and five "hold"; median PT is $90

As of last close, MCHP stock up 19.3% YTD