Chip maker Xilinx to raise $520 million in convertible bond sale; plans to buy back shares

Xilinx to raise $520 million in bond sale

SAN JOSE, Calif. — Chip maker Xilinx Inc. said Thursday it plans to sell institutional investors $520 million in bonds that will be convertible into common stock under certain conditions.

The company said it will use most of the proceeds from the seven-year notes due in June 2017 to repurchase stock and the rest for general corporate purposes. It did not specify how many common shares it plans to buy back.

Xilinx plans to hash out the terms under which the notes can be converted into stock in negotiations with initial buyers of the debt.

The company also is offering buyers the right to buy up to $80 million more notes if demand exceeds initial supply.