PMC-Sierra ( PMCS) followed up a soft third-quarter earnings report Wednesday afternoon with an oddly timed announcement in the wee hours Thursday morning of a convertible bond offering. The Santa Clara, Calif., communications chip maker said in a press release issued at 4:00 a.m. EDT that it would sell $215 million worth of 20-year senior convertible notes to institutional buyers. Terms of the rule 144A placement haven't yet been reached, the company said. News of the offering comes just hours after PMC disappointed Wall Street with
mixed third-quarter numbers. PMC-Sierra said it "intends to use the net proceeds from this proposed offering for general corporate purposes, including capital expenditures, research and development and potential investments in and acquisitions of complementary businesses, partnerships, minority investments, products or technologies, to fund further enhancements of PMC-Sierra's operating infrastructure and for working capital. If PMC-Sierra reaches an agreement to purchase a semiconductor business that it has identified and that is consistent with its business strategy, PMC-Sierra expects the proceeds from this proposed offering will be used to fund a portion of the purchase price." PMC closed Wednesday at $7.93.