Most Qorvo (QRVO) Bondholders Said Yes, but Skyworks (SWKS) Is Still Waiting
Maham FatimaMon, September 21, 2026 at 8:36 AM GMT+3 3 min read
On September 18, Skyworks Solutions (NASDAQ:SWKS) extended the deadline on its offers to swap Qorvo (NASDAQ:QRVO) bonds for new Skyworks debt, moving it to September 25. Bondholders are hardly balking. But the swap cannot settle until the Qorvo merger closes, so the real story is timing, and a routine bond notice turns out to be a decent window into how the whole combination is going.
Bondholders Have Already Signed On
Begin with the people lending to the other side of this deal. By the September 18 cutoff, holders had tendered $775,664,000 of Qorvo's 2029 notes, or 91.25% of what is outstanding. The 2031 series did even better, at 93.33%. That is close to a full vote for swapping into Skyworks paper. Anyone who has already tendered does not have to lift a finger, while latecomers can still join until September 25.
The operating business is also holding up. On July 28, Skyworks reported third-quarter revenue of $935 million for a quarter that ended July 3, ahead of expectations. Automotive and data center posted double-digit gains, and management says it added design wins in telematics, infotainment, and AI data center switches. Looking ahead, the September quarter is guided to $1.01 billion to $1.06 billion in revenue, helped by a high-teens sequential jump in mobile as its largest customer launches new products.
Another Extension, No Guarantees
The first problem is that the finish line keeps moving. Skyworks says regulatory approvals are progressing, not done, and it warns there is no assurance the closing arrives on schedule. The bond swap cannot settle until no sooner than two business days after the merger closes, so every slip in the deal means another extension notice like this one.
The price of getting there is real, too. Skyworks expects to raise about $2 billion of acquisition debt, and its September quarter outlook already absorbs about $0.03 a share of added interest expense for just a partial quarter. In the same July 28 release, it decided to stop declaring quarterly dividends and replaced a buyback program due to expire in February 2027 with a new $2 billion one that carries no minimum purchase requirement. Shareholders who wanted an income stream lose it. And GAAP earnings of $0.22 a share sit far below the $1.08 in adjusted earnings, so the adjusted figure strips out a lot.
Skeptics Crowd the Stock
35 hedge funds owned Skyworks in the latest quarter, the same 35 as before, so big money is neither piling in nor leaving. Short interest is the louder signal, at 36.38% of the float, which is heavy skepticism. Crowded shorts can fuel a sharp rally if the news turns, though some of this may be hedging rather than pure conviction. At a forward P/E of 17.61, as of September 18, the price is not demanding, so the skepticism is hard to pin on a rich valuation.
Hope Meets the Closing Date
Skyworks is asking the market to look past a delay and trust a closing date it cannot guarantee. Bondholders have made their choice, while short sellers are betting the other way. The answer will come from whether Qorvo's regulatory approvals arrive in time for a close by year-end. If they do, and automotive and data center keep growing, the bulls get a bigger, better-funded company. If the deadline slips again or the interest bill runs heavier than guided, the bears get their case.
While we acknowledge the potential of SWKS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In.
Disclosure: None. Follow Insider Monkey on Google News.
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.