A month after announcing a sapphire substrate manufacturing agreement with consumer electronics giant Apple, GT Advanced Technologies (GTAT) is planning to raise over US$125 million in a convertible bond.
The company is also offering 12,000,000 shares of its common stock as well as the typical over allotment. GTAT had sold 3.3 million shares in September, 2013 raising US$50 million.
The company was coy on exactly what the major capital raising would be used for, noting in an SEC filing that it had yet to decide what it would use the proceeds for.
However, GTAT provided a range of options, including the acquisition of companies, repayment and refinancing of debt as well as working capital and capital expenditure needs. More than likely the proceeds would be used for the latter and in relation to its manufacturing partnership with Apple.