Most Qorvo (QRVO) Bondholders Said Yes, but Skyworks (SWKS) Is Still Waiting
On September 18, Skyworks Solutions extended the deadline for bondholders to swap Qorvo bonds for new Skyworks debt, moving it to September 25. By the cutoff, $775.66 million of Qorvo's 2029 notes, or 91.25% of what is outstanding, had been tendered, with 93.33% of the 2031 series. This swap cannot settle until the Qorvo merger closes, making timing a key factor in the deal.
The operating business is performing well, with Skyworks reporting third-quarter revenue of $935 million, beating expectations. The company expects to raise about $2 billion in acquisition debt, absorbing about $0.03 a share of added interest expense for the September quarter. Skyworks has stopped declaring quarterly dividends and replaced a buyback program with a new $2 billion one, which has little minimum purchase requirement.
The forward P/E of 17.61 suggests the stock is not expensive, but there is heavy skepticism, with 36.38% of the float shorted. Bondholders have chosen to swap their Qorvo bonds, while short sellers are betting against the deal. The final outcome will depend on whether Qorvo's regulatory approvals arrive in time for the merger to close by year-end.
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