Long-Term Debt

3 Months Ended

Apr. 02, 2022

Long-Term Debt [Abstract]

Long-Term Debt

Note 4 – Long-Term Debt

Long-term debt consists of the following:

	April 2, 2022			December 31, 2021
Credit facility	$	-		$	-
Convertible senior notes, due 2025		465,344			465,344
Deferred financing costs		(8,860	)		(9,678	)
		456,484			455,666
Less current portion		-			-
	$	456,484		$	455,666

The following table summarizes some key facts and terms regarding the outstanding convertible senior notes due 2025 as of April 2, 2022:

	Convertible Senior Notes Due 2025
Issuance date	June 12, 2018
Maturity date	June 15, 2025
Principal amount as of April 2, 2022	$	465,344
Cash coupon rate (per annum)		2.25	%
Nonconvertible debt borrowing rate at issuance (per annum)		5.50	%
Conversion rate effective March 16, 2022 (per $1 principal amount)		31.9749
Effective conversion price effective March 16, 2022 (per share)	$	31.27
130% of the current effective conversion price (per share)	$	40.65

Prior to December 15, 2024, the holders of the convertible senior notes due 2025 may convert their notes only under the following circumstances: (1) the sale price of Vishay common stock reaches 130% of the conversion price for a specified period; (2) the trading price of the notes falls below 98% of the product of the sale price of Vishay's common stock and the conversion rate for a specified period; or (3) upon the occurrence of specified corporate transactions.  The convertible senior notes due 2025 are not currently convertible.

Upon conversion of the convertible senior notes due 2025, Vishay will satisfy its conversion obligations by paying $1 cash per $1 principal amount of converted notes and settle any additional amounts due in common stock.

The quarterly cash dividend program of the Company results in adjustments to the conversion rate and effective conversion price for the convertible senior notes due 2025 effective as of the ex-dividend date of each cash dividend.  The conversion rate and effective conversion price for the convertible senior notes due 2025 is adjusted for quarterly cash dividends to the extent such dividends exceed $0.085 per share of common stock.