STMicroelectronics Borrows $1.5 Billion to Spare Shareholders from Dilution

STMicroelectronics sold $1.5 billion in convertible bonds (maturing 2031–2033) on June 16, using half the proceeds to retire debt due in 2027. Convertibles let the chipmaker lock in low interest payments while deferring equity issuance—avoiding the shareholder dilution that straight stock sales would cause when chip valuations are weak. Classic liability management: borrow when stocks are soft and credit conditions allow it.