By Rebecca Melvin
New York, April 9 - Micron Technology Inc. priced $200 million of 4.5-year convertible senior notes late Wednesday to yield 4.25% with an initial conversion premium of 22.5%, according to a syndicate source.
The deal priced at the rich end of revised talk for the coupon, which was 4.25% to 4.5%, and at revised talk for the premium. Initially the premium was talked between 17.5% to 22.5% and the coupon was talked at 5% to 5.5%.
Concurrently, Micron priced about $250 million of common stock, or 60.24 million shares at $4.15 a share
The registered convertible offering was sold via joint bookrunners Morgan Stanley & Co. Inc. and Goldman Sachs & Co. Deutsche Bank Securities Inc. was a co-manager.
There is a $30 million over-allotment option.
In connection with the convertibles, Micron entered into capped call transactions on about 39.3 million common shares with some underwriters and affiliates. The capped calls have an upper strike of 60%.
The notes are non-callable until April 20, 2012 and then provisionally callable for 1.5 years, subject to a price hurdle of 135%.
About $21.5 million of proceeds will be used to pay the cost of the capped call transactions, with the rest earmarked for general corporate purposes, including working capital, capital expenditures, potential acquisitions, and strategic transactions.
Micron is a Boise, Idaho-based maker of semiconductor devices.
| Issuer: | Micron Technology Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Oct. 15, 2013
|
| Bookrunners: | Morgan Stanley & Co. Inc. and Goldman Sachs & Co.
|
| Co-manager: | Deutsche Bank Securities Inc.
|
| Coupon: | 4.25%
|
| Price: | Par
|
| Yield: | 4.25%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $5.08
|
| Price talk: | 4.25%-4.5%, up 22.5%, revised from 5%-5.5%, up 17.5%-22.5%
|
| Call: | Non-callable until April 20, 2012, then provisionally callable for 1.5 years subject to a 135% hurdle
|
| Pricing date: | April 8, after the close
|
| Settlement date: | April 15
|
| Distribution: | Registered
|
| Concurrent offering: | $250 million of common stock at $4.15 a share
|
| Stock symbol: | NYSE: MU
|
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