Pricing Term Sheet dated as
of
September 24, 2012

Issuer Free Writing Prospectus
Filed Pursuant to Rule 433

Registration Statement No. 333-184045

Supplementing the Preliminary

Prospectus Supplement

dated September 24, 2012 and the

Prospectus dated September 24, 2012

 

GT Advanced Technologies Inc.

 

Offering of
$
205 million aggregate principal amount of
3.00% Convertible Senior Notes due 2017
(the “Offering”)

 


 

This pricing term sheet relates only to the convertible senior notes (the “Notes”) described below and should be read together with the preliminary prospectus supplement dated September 24, 2012 (including the documents incorporated by reference therein) relating to the Offering (the “Preliminary Prospectus Supplement”) before making a decision in connection with an investment in the Notes. The information in this term sheet supersedes the information in the Preliminary Prospectus Supplement relating to the Notes to the extent that it is inconsistent therewith. Terms used but not defined herein have the meanings ascribed to them in the relevant Preliminary Prospectus Supplement.

 


 

Issuer:

GT Advanced Technologies Inc. (NASDAQ: GTAT)

 

 

Notes:

3.00% Convertible Senior Notes due 2017

 

 

Trade Date:

September 25, 2012

 

 

Settlement Date:

September 28, 2012

 

 

Offering Size:

$205 million ($220 million if the underwriters exercise their option to purchase additional Notes in full)

 

 

Maturity:

October 1, 2017, subject to earlier repurchase or conversion

 

 

Public Offering Price:

100% of principal amount, plus accrued interest, if any, from the Settlement Date

 

 

Underwriting Discounts and Commissions:

3% of principal amount

 

 

Interest Rate:

3.00% per annum accruing from the Settlement Date, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2013

 

 

NASDAQ Last Reported Sale Price on September 24, 2012:

$5.93 per share of the Issuer’s common stock

 

 

Conversion Premium:

Approximately 30% above the NASDAQ Last Reported Sale Price on September 24, 2012

 

 

Initial Conversion Rate:

129.7185 shares of the Issuer’s common stock per $1,000 principal amount of Notes

 

 

Initial Conversion Price:

Approximately $7.71 per share of the Issuer’s common stock

 

 

Use of Proceeds:

The net proceeds from this Offering are estimated to be approximately $198.3 million (or $212.9 million if the underwriters exercise their option to purchase additional Notes in full), after deducting fees and estimated offering expenses payable by the Issuer. The Issuer expects to enter into convertible note hedge transactions with one or more counterparties, one or more of which may be underwriters or affiliates thereof (each of which is referred to as an “option counterparty”). The Issuer also intends to enter into warrant transactions with the option counterparties. The Issuer intends to use approximately $15.2 million of the net proceeds from this Offering to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the Issuer from the sale of the warrant transactions). The Issuer intends to use the remainder of the net

 



 

 

proceeds from this Offering for general corporate purposes, which may include the acquisition of companies or businesses, repayment and refinancing of debt, working capital and capital expenditures.

 

 

 

If the underwriters exercise their option to purchase additional Notes, the Issuer may sell additional warrants and use a portion of the net proceeds from the sale of the additional Notes, together with the proceeds from the additional warrants, to enter into additional convertible note hedge transactions and for general corporate purposes as described above.

 

 

Adjustment to Shares Delivered upon Conversion in connection with a Make-Whole Fundamental Change:

The following table sets forth the hypothetical stock price and the number of additional shares to be received per $1,000 principal amount of Notes upon conversion in connection with a make-whole fundamental change for each stock price and the effective date set forth below. The stock prices set forth in the first row of the table below, and the number of additional shares, are subject to adjustment as described in the Preliminary Prospectus Supplement.

 

Stock Price

 

Effective Date

 

$5.93

 

$6.50

 

$7.00

 

$7.50

 

$8.00

 

$8.50

 

$9.00

 

$10.00

 

$11.00

 

$12.00

 

$13.00

 

$14.00

 

$15.00

 

$20.00

 

$25.00

 

$30.00

 

September 28, 2012

 

38.9155

 

37.8374

 

32.9196

 

28.8807

 

25.5279

 

22.7178

 

20.3418

 

16.5776

 

13.7663

 

11.6143

 

9.9314

 

8.5903

 

7.5037

 

4.2411

 

2.6663

 

1.7657

 

October 1, 2013

 

38.9155

 

36.3213

 

31.2204

 

27.0710

 

23.6610

 

20.8324

 

18.4659

 

14.7747

 

12.0757

 

10.0514

 

8.4987

 

7.2832

 

6.3141

 

3.4995

 

2.1898

 

1.4482

 

October 1, 2014

 

38.9155

 

34.3716

 

29.0250

 

24.7320

 

21.2530

 

18.4096

 

16.0671

 

12.4968

 

9.9685

 

8.1312

 

6.7635

 

5.7222

 

4.9126

 

2.6730

 

1.6776

 

1.1147

 

October 1, 2015

 

38.9155

 

31.7801

 

26.0630

 

21.5609

 

17.9920

 

15.1447

 

12.8588

 

9.5103

 

7.2700

 

5.7319

 

4.6476

 

3.8625

 

3.2785

 

1.7804

 

1.1424

 

0.7704

 

October 1, 2016

 

38.9155

 

28.2163

 

21.7685

 

16.8691

 

13.1552

 

10.3440

 

8.2168

 

5.3827

 

3.7377

 

2.7609

 

2.1605

 

1.7742

 

1.5119

 

0.8895

 

0.6002

 

0.4132

 

October 1, 2017

 

38.9155

 

24.1277

 

13.1386

 

3.6148

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

0.0000

 

 

 

The exact stock prices and effective dates may not be as set forth in the table above, in which case:

 

 

 

·      If the stock price is between two stock prices in the table or the effective date is between two effective dates in the table, the number of additional shares will be determined by a straight line interpolation between the number of additional shares set forth for the higher and lower stock prices and the earlier and later effective dates, as applicable, based on a 365 day year.

 

·      If the stock price is greater than $30.00 per share (subject to adjustment in the same manner as the stock prices set forth in the column headings in the table above), no additional shares will be added to the conversion rate.

 

·      If the stock price is less than $5.93 per share (subject to adjustment in the same manner as the stock prices set forth in the column headings of the table above), no additional shares will be added to the conversion rate.

 

Notwithstanding the foregoing, in no event will the conversion rate exceed 168.6340 shares of common stock per $1,000 principal amount of Notes, subject to adjustment in the same manner as the conversion rate as set forth under “Description of the Notes—Conversion Rate Adjustments” in the Preliminary Prospectus Supplement.

 

 

CUSIP/ISIN:

36191U AA4 / US36191UAA43

 

 

Joint Book-Running Managers:

UBS Investment Bank

BofA Merrill Lynch

Credit Suisse

 

 

Joint Lead Manager:

RBS

 



 

Co-Manager:

Santander

 

UBS Investment Bank, BofA Merrill Lynch and Credit Suisse will act as joint book-running managers for the Offering. The Issuer has filed a registration statement (including a prospectus dated September 24, 2012 and a Preliminary Prospectus Supplement dated September 24, 2012) with the Securities and Exchange Commission, or SEC, for the Offering.  Before you invest, you should read the Preliminary Prospectus Supplement, the accompanying prospectus and the other documents the Issuer has filed with the SEC for more complete information about the Issuer and the Offering.  You may get these documents for free by visiting EDGAR on the SEC web site at www.sec.gov.  Alternatively, the Issuer, the underwriters or any dealer participating in the Offering will arrange to send you the Preliminary Prospectus Supplement and the accompanying prospectus if you request them by contacting UBS Investment Bank, Attn: Prospectus Department, 299 Park Avenue, New York, NY 10171 or by calling (888) 827-7275, by contacting BofA Merrill Lynch, Attn: Prospectus Department, 222 Broadway, 7th Floor, New York, NY 10038, by calling (866) 500-5408 or by emailing dg.prospectus_requests@baml.com or by contacting Credit Suisse Securities (USA) LLC, Attn: Prospectus Department, One Madison Avenue, New York, NY 10010, by calling (800) 221-1037 or by emailing newyork.prospectus@credit-suisse.com.

 

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.