June 7, 2010 (FinancialWire) — Xilinx, Inc. (NASDAQ: XLNX) said that it has priced $520 million of 2.625% convertible senior notes due in June 2017. The notes will be sold to qualified institutional buyers.

The sale is scheduled to close on June 9. Xilinx has granted to the initial purchasers of the notes the right to purchase up to an additional $80 million principal amount of notes solely to cover overallotments.

Interest will be payable on the notes semiannually at a rate of 2.625% percent per year. The notes will be convertible upon certain conditions. The initial conversion rate for the notes is 33.0164 shares of common stock per $1,000 principal amount of the notes, which is equal to a conversion price of approximately $30.29 per share, representing a 20% conversion premium based on the closing price of Xilinx's common stock of $25.24 per share on June 3, 2010.

Xilinx said it estimates that the net proceeds from this offering will be around $452.9 million.

The company plans to use up to $433.3 million of the net proceeds from the offering to repurchase shares of common stock under an accelerated share repurchase program pursuant to an agreement with one of the initial purchasers or its affiliate.

Xilinx has also entered into convertible note hedge transactions in its common stock with affiliates of the initial purchasers of the notes, in order to limit potential dilution from conversion of the notes.

California-based Xilinx is a provider of programmable chips.

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