Camtek Successfully Prices Upsized $425 Million Convertible Senior Notes Offering Due 2030

Overview

On September 12, 2025, Camtek Ltd., a prominent player in the semiconductor industry, revealed that it has successfully priced an upsized offering of $425 million in 0.00% convertible senior notes that are scheduled to mature on September 15, 2030. This new offering surpasses the company’s initial target of $400 million, indicating a robust demand from qualified institutional buyers under Rule 144A of the Securities Act.

Details of the Offering

The offering's total amount reflects the solid interest in Camtek's financial instruments as investors are looking for flexible and innovative investment vehicles. Notably, the initial purchasers of the notes have been granted an option to buy an additional $75 million of the notes within a 13-day period after the initial issuance date. The closing of this offering is expected to take place on September 16, 2025, contingent upon standard closing conditions.

The convertible notes will allow investors to convert their holdings into Camtek ordinary shares. Each $1,000 principal amount of these notes can be exchanged for approximately 9.1455 shares, equating to a conversion price of around $109.34 per share. This pricing reflects a premium of approximately 30% over the last closing price of the company shares on September 11, 2025. It is significant that the notes do not accrue regular interest; instead, they will have a principal amount that remains constant.

Conversion Rights and Repurchase Terms

Holders of the notes will have the ability to convert them under specific conditions before June 15, 2030. Following this date and until the second trading day preceding maturity, conversions can occur at any time, providing investors with enhanced flexibility. Depending on their choice, conversions can be settled in cash or through the issuance of ordinary shares, ensuring that shareholders have various options during their investment lifecycle.

Moreover, Camtek holds the right to redeem the notes under certain circumstances, particularly relating to taxation issues that might arise before the scheduled maturity date. The firm can also repurchase all or part of the notes, provided that certain market conditions are met, such as maintaining a share price above 130% of the conversion price.

Fund Allocation and Strategic Intent

Camtek has earmarked the net proceeds from this offering to repurchase around $167.1 million of its existing 0% senior convertible notes due 2026, utilizing a total cash amount of approximately $267 million. This approach reflects a strategic intention to streamline its debt portfolio by replacing older debt instruments with the new notes while reserving some funds for general corporate purposes. These may encompass acquisitions, capital expenditures, and continued investments in research and development, demonstrating Camtek's commitment to growth and innovation.

Market Context and Future Outlook

The convertible notes are exclusively available to what are deemed qualified institutional buyers, showcasing the company’s stance towards maintaining a specialized investor base. This offering aligns with broader trends in the semiconductor industry as demand continues to soar, particularly in fields like advanced packaging and heterogeneous integration.

As the semiconductor landscape evolves and new technologies emerge, Camtek is positioned to respond to market demands while enhancing shareholder value through strategic financing. This offering and Camtek's robust operational strategies will no doubt play a vital role in its growth trajectory, solidifying its reputation as a key player in the semiconductor inspection and metrology sector.

Conclusion

With the recent announcement of the $425 million convertible notes offering, Camtek signifies its determination to address financial flexibility and leverage investment opportunities. As the company continues to innovate and lead in semiconductor technologies, this strategic move is expected to strengthen its financial standing and enhance operational capabilities in a highly competitive market.