STMicroelectronics Borrows $1.5 Billion to Avoid Diluting Shareholders

STMicroelectronics raised $1.5 billion through convertible bonds—loans that can become stock—due in 2031 and 2033. The move lets the chip supplier lock in low interest payments while sidestepping dilution that would hurt existing shareholders if it issued new stock while valuations are weak. Half the proceeds pay off earlier debt. Smart timing when the equity market is soft.