Microchip sells 27 million mandatory convertible preferred depositary shares
Microchip Technology agreed on March 20, 2025 to sell 27,000,000 depositary shares of its 7.50% Series A Mandatory Convertible Preferred Stock, and underwriters exercised their option for 2,700,000 more on March 21. The offering closed March 25, 2025, and the preferred stock will convert into common shares around March 15, 2028, which could dilute common shareholders, while preferred holders receive dividends and liquidation priority ahead of common stock.
Key points
- 27,000,000 depositary shares were sold, plus 2,700,000 over-allotment shares exercised in full on March 21, 2025; the offering closed March 25, 2025.
- Each depositary share is a 1/20th interest in a preferred share with a $1,000 liquidation preference and a 7.50% annual dividend, payable quarterly at the board's discretion.
- Each preferred share converts around March 15, 2028 into between 16.0060 and 19.6080 common shares, based on the average stock price over a 20-trading-day period.
- Capped call transactions with several banks have an initial cap price of $71.40 per share and are generally expected to reduce potential dilution; common dividends and repurchases are restricted while preferred dividends are unpaid.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:30 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on March 25, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.