MALVERN, PA - Vishay Intertechnology Inc . (NYSE:VSH), a $2.51 billion market cap semiconductor manufacturer currently trading at $18.48, has announced adjustments to the conversion rates for its convertible senior notes due to its quarterly cash dividend program, as well as the authorization to repurchase additional shares of common stock, according to a recent 8-K filing with the Securities and Exchange Commission.
Effective today, the conversion rate for Vishay's 2.25% Convertible Senior Notes due 2025 has been adjusted to 32.2205 shares of common stock per $1,000 principal amount, with an effective conversion price of $31.04 per share. This adjustment is a routine procedure to account for the impact of dividend distributions on the conversion terms of the notes. The conversion terms for the company's 2.25% Convertible Senior Notes due 2030 remain unchanged.
In addition, Vishay's Board of Directors has approved the repurchase of an additional 3.0 million shares of common stock. This decision comes as part of the company's Stockholder Return Policy (SHRP), which was established in February 2022.
The SHRP expresses Vishay's intention to return at least 70% of its free cash flow to shareholders annually, after accounting for scheduled principal payments of long-term debt, through dividends or stock repurchases. Prior to this new authorization, approximately 1.2 million shares remained available for repurchase from a previous authorization of 8.5 million shares. InvestingPro data shows the company has maintained dividend payments for 11 consecutive years, with a current dividend yield of 2.07%.
Vishay Intertechnology, headquartered in Malvern, Pennsylvania, is a global manufacturer and supplier of semiconductors and electronic components, generating annual revenue of $3.01 billion. The company maintains a healthy balance sheet with a current ratio of 2.81, indicating strong short-term liquidity.
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