By Kenneth Lim
Boston, May 18 - Micron Technology Inc. priced an upsized $1.135 billion offering of seven-year convertible senior notes within talk on Thursday to yield 1.875% with an initial conversion premium of 23.75%.
The convertibles were offered at par. Price talk was for a coupon of 1.875% and an initial conversion premium of 22.5% to 25%, revised from the earlier talk of a 1.625% to 2.125% coupon and a 22.5% to 27.5% initial conversion premium.
The size of the deal was originally $1.1 billion. The over-allotment option remains at an additional $165 million.
Morgan Stanley was the bookrunner of the registered offering.
The convertibles are non-callable for the first four years, after which they may be called subject to a hurdle at 130% of the conversion price. The convertibles may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There is a net-share settlement option.
Micron, a Boise, Idaho-based maker of semiconductor devices, said it will use $132 million of the proceeds to fund capped call transactions with the remainder earmarked for general corporate purposes.
| Issuer: | Micron Technology Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Morgan Stanley
|
| Amount: | $1.135 billion
|
| Greenshoe: | $165 million
|
| Maturity: | June 1, 2014
|
| Coupon: | 1.875%
|
| Price: | Par
|
| Yield: | 1.875%
|
| Conversion premium: | 23.75%
|
| Conversion price: | $14.23
|
| Conversion ratio: | 70.2679
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before June 6, 2011, thereafter callable subject to hurdle at 130% of conversion price
|
| Puts: | None
|
| Price talk: | 1.875%, up 22.5%-25%
|
| Pricing date: | May 17, after the close
|
| Settlement date: | May 23
|
| Distribution: | Registered
|
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