Micron greenshoe exercised, lifts 4.25% convertibles to $230 million

By Devika Patel

Knoxville, Tenn., April 14 - Underwriters for Micron Technology Inc.'s 4.25% 4.5-year convertible senior notes due Oct. 15, 2013 exercised their over-allotment option in full for $30 million more of the convertibles, increasing the size of the issue to $230 million, the company said in an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company sold the convertibles at par after the market close April 8 in a registered offering via joint bookrunners Morgan Stanley & Co. Inc. and Goldman Sachs & Co. Deutsche Bank Securities Inc. was a co-manager.

The bonds have a conversion premium of 22.5% and a conversion price of $5.08.

The notes are non-callable until April 20, 2012 and then provisionally callable for 1.5 years, subject to a price hurdle of 135%.

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%.

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.

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