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GlobalFoundries Announces Pricing of $950 Million Secondary Offering of Ordinary Shares, Including Concurrent $200 Million Share Repurchase
GFSGLOBALFOUNDRIES(GFS) Newsfilter·2024-05-23 03:53

Core Viewpoint - GlobalFoundries Inc. announced a secondary public offering of 950millionofitsordinarysharesatapriceof950 million of its ordinary shares at a price of 50.75 per share, which includes a 200millionsharerepurchasefromtheSellingShareholder,MubadalaTechnologyInvestmentCompany[1][3]Group1:OfferingDetails−TheofferingconsistssolelyofsharesbeingsoldbyMubadalaTechnologyInvestmentCompany,whichisGlobalFoundries′largestshareholder,andthecompanyitselfwillnotreceiveanyproceedsfromthissale[2]−TheSellingShareholderhasgrantedunderwritersa30−dayoptiontopurchaseanadditional200 million share repurchase from the Selling Shareholder, Mubadala Technology Investment Company [1][3] Group 1: Offering Details - The offering consists solely of shares being sold by Mubadala Technology Investment Company, which is GlobalFoundries' largest shareholder, and the company itself will not receive any proceeds from this sale [2] - The Selling Shareholder has granted underwriters a 30-day option to purchase an additional 112.5 million of shares, representing 15% of the initial offering [1] - The offering is expected to close on May 28, 2024, subject to customary closing conditions [1] Group 2: Share Repurchase - GlobalFoundries will concurrently repurchase $200 million of the Selling Shareholder's ordinary shares at the public offering price [3] - The repurchase will be funded with cash from GlobalFoundries' balance sheet and is conditioned on the closing of the offering [3] Group 3: Underwriters - Morgan Stanley & Co. LLC and BofA Securities are acting as book-running managers for the offering, with additional support from Citigroup, Goldman Sachs, and J.P. Morgan among others [4]