DGAP-News: Micron Launches $870.0 Million Offering of Convertible Senior Notes
ID: 614582
11.04.2012 22:29
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BOISE, Idaho, 2012-04-11 22:29 CEST (GLOBE NEWSWIRE) --
Micron Technology, Inc. (Nasdaq:MU) today announced that it intends to offer,
subject to market and other considerations, $435.0 million aggregate principal
amount of convertible senior notes due 2032 (the '2032A Notes') and $435.0
million aggregate principal amount of convertible senior notes due 2032 (the
'2032B Notes' and, together with the 2032A Notes, the 'Notes') through an
offering in the United States to qualified institutional buyers pursuant to
Rule 144A under the Securities Act of 1933, as amended (the 'Securities Act').
In connection with this offering, Micron intends to grant the initial
purchasers an over-allotment option with respect to an additional $65.0 million
aggregate principal amount of 2032A Notes and an additional $65.0 million
aggregate principal amount of 2032B Notes.
The terms of the Notes will require Micron to repurchase such Notes at the
option of the holders for cash on dates to be determined, in each case at a
purchase price equal to the principal amount thereof plus accrued and unpaid
interest to, but excluding the repurchase date. In addition, the terms of the
Notes will permit holders to require Micron to repurchase their notes upon a
change of control or a termination of trading at a purchase price equal to the
principal amount thereof plus accrued and unpaid interest to, but excluding the
repurchase date.
The Notes will be convertible, subject to certain conditions, into cash or
shares of Micron common stock or a combination thereof, at Micron's election.
The interest rate, the initial conversion price, redemption provisions and
other terms of the Notes will be determined by negotiations between Micron and
the initial purchasers.
In connection with the offering of the Notes, Micron plans to enter into capped
call transactions with one or more counterparties, which may include some of
the initial purchasers and/or their affiliates. The capped call transactions
are intended to reduce the potential dilution upon conversion of the Notes.
In connection with establishing their initial hedge of the capped call
transactions, Micron expects that the counterparties may enter into various
over-the-counter derivative transactions with respect to Micron's common stock
concurrently with, or shortly after, the pricing of the Notes and may unwind or
enter into various over-the-counter derivatives and/or purchase Micron's common
stock in secondary market transactions following the pricing of the Notes.
These activities could have the effect of increasing or preventing a decline in
the price of Micron's common stock concurrently with or following the pricing
of the Notes. In addition, the counterparties may modify or unwind their hedge
positions by entering into or unwinding various derivative transactions and/or
purchasing or selling Micron's common stock in secondary market transactions
prior to the maturity of the Notes (and are likely to do so on each exercise
date of the capped call transactions).
Micron expects to use a portion of the net proceeds of the offering for the
cost of the capped call transactions that Micron intends to enter into
contemporaneously with the offering of the Notes. Micron expects to use the
balance of the net proceeds for general corporate purposes, which may include
capital expenditures, working capital, strategic acquisitions, joint ventures
and other investments and repayment of other indebtedness.
This announcement is neither an offer to sell nor a solicitation to buy any of
the foregoing securities, nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction.
The securities will not be registered under the Securities Act, or any state
securities laws, and unless so registered, may not be offered or sold in the
United States except pursuant to an exemption from the registration
requirements of the Securities Act and applicable state laws.
The Micron Technology, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6950
CONTACT: Daniel Francisco
Micron Technology, Inc.
1-208-368-5584
dfrancisco@micron.com
News Source: NASDAQ OMX
11.04.2012 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Micron Technology, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US5951121038
WKN:
End of Announcement DGAP News-Service
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Datum: 11.04.2012 - 22:29 Uhr
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