K&L Gates Advises Silicon Motion on US$1.15 Billion Convertible Senior Notes Offering

Global law firm K&L Gates LLP advised Silicon Motion Technology Corporation (NASDAQ: SIMO) in connection with its Rule 144A offering of $1.15 billion in aggregate principal amount of 0.00% convertible senior notes due 2031. The offering included the exercise in full of the initial purchasers' option to purchase an additional $150 million in aggregate principal amount of notes. 

Headquartered in Taiwan, Silicon Motion is a leading supplier of NAND flash controllers for solid-state drives and embedded storage applications across a broad range of end markets, including servers, personal computers, smartphones, Internet of Things devices, automotive applications, and other consumer and industrial products. 

According to the company, the notes will be senior unsecured obligations and are intended to provide additional financial flexibility and support growth initiatives. Silicon Motion intends to use the net proceeds for general corporate purposes and to repay amounts outstanding under its credit agreement.   

The K&L Gates team was led by Taipei partners James Chen and Billy Chen and Nashville partner David Bartz with support from Charlotte partner Coleman Wombwell and Nashville partner Lauren Ammons. Nashville associates Mary Blomquist and Justin Kleckner, Taipei associates Pearl Kuo and Yoting Lin, and Taipei counsel Albert Wang  contributed to the deal. Pittsburgh partner Stephen Barge and Pittsburgh associate Vicki Wu also assisted on tax-related matters. 

"Silicon Motion has been a valued client of the firm for many years, and we were pleaseed to support the company on this significant capital markets transaction. The offering required close coordination across multiple workstreams and jurisdictions, and reflects Silicon Motion's continued focus on maintaining financial flexibility as it pursues its strategic objectives," said James Chen. 

"This successful offering positions Silicon Motion to continue executing its long-term growth strategy. K&L Gates has been a trusted advisor for more than two decades. The team combined deep capital and debt markets experience with a strong understanding of our business objectives, helping us execute the transaction with confidence and efficiency," said Wallace Kou, President and Chief Executive Officer.  

K&L Gates’ Corporate practice is one of the most substantial in the legal industry, with hundreds of lawyers in offices across the globe providing clients with practical legal solutions in the structuring, financing, and closing of domestic, international, and cross-border transactions.