UPDATE 1-STMicroelectronics to issue $1 bln convertible bond
MILAN, June 26 (Reuters) - Franco-Italian chipmaker STMicroelectronics said on Thursday it is to issue a $1 billion convertible bond to boost its capital structure, taking advantage of positive conditions on financial markets.
The company, whose chips are used in cars, computers and mobile phones, would also launch a buy-back programme for up to 2.2 percent of its share capital.
The convertible bonds will be issued in two tranches with five- and seven-year maturities.
The shorter tranche will not pay any coupon, while the longer one will offer a coupon of between 0.5 percent and 1 percent, the company said in a statement.
Final conditions will be published later in the day, it added.
The company plans to issue the bond on or around July 3.
Shares in the company in Milan were up 1.3 percent at 6.88 euros at 0854 GMT, when the Milan market's All-Share index was up 0.1 percent. (Reporting by Francesca Landini; Editing by Greg Mahlich)
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