Applied Materials issues make-whole call for $200 million 7.125% notes

By Susanna Moon

Chicago, April 3 – Applied Materials, Inc. issued a redemption notice Monday for its $200 million principal amount of outstanding 7.125% senior notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

The notes will be redeemed on May 4 at a price equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest on the notes discounted to the redemption date on a semiannual basis at the Treasury rate plus 15 basis points and any accrued interest.

Funding for the redemption will come from proceeds of the issue of the company’s senior notes on March 31.

As reported March 28, Applied priced $2.2 billion of senior notes in two tranches with $1.2 billion of 3.3% 10-year notes at 99.645 to yield 3.342% and $1 billion of 4.35% 30-year notes at 99.817 to yield 4.361%.

Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.

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