Published on 1/29/2015 in the Prospect News High Yield Daily.
New Issue: Micron Technology prices upsized $1 billion 8.5-year notes to yield 5¼%
By Paul Deckelman
New York, Jan. 29 – Micron Technology, Inc. priced an upsized $1 billion of 8.5-year senior notes (Ba3/BB) on Thursday, high-yield primary sources said.
That deal was increased from an originally announced $750 million and priced at par to yield 5¼%, right at pre-deal market price talk.
The drive-by Rule 144A/Regulation S deal, offered with registration rights, was shopped to potential buyers via a mid-morning investor call.
It was brought to market via joint lead managers and bookrunners Goldman Sachs & Co., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were also joint-lead managers for the transaction.
BNP Paribas Securities Corp., DBS Bank Ltd., ING Financial Markets LLC, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc., Standard Chartered Bank and Wells Fargo Securities, LLC were co-managers.
The notes will have three years of call protection and will be first callable at par plus 75% of their coupon, declining over the next three years to par.
There is also a standard equity clawback provision allowing for the repurchase of up to 35% of the notes for the first three years after issue.
The Boise, Idaho-based provider of semiconductor solutions plans to use the new-deal proceeds for the retirement or repurchase of convertible notes and debt and for general corporate purposes.
| Issuer: | Micron Technology, Inc.
|
| Amount: | $1 billion (upsized from originally announced $750 million)
|
| Securities: | Senior notes
|
| Maturity: | Aug. 1, 2023 (8.5 years)
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC
|
| Joint-lead managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | BNP Paribas Securities Corp., DBS Bank Ltd., ING Financial Markets LLC, Mitsubishi UFJ Securities (USA), Inc., RBS Securities Inc., Standard Chartered Bank, Wells Fargo Securities, LLC
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 356 bps vs UST 2.5% due August 15, 2023 (yielding: 1.686%)
|
| Call protection: | Non-callable until Feb. 1, 2018 other than a make-whole call at Treasuries plus 50 bps; callable on or after Feb. 1, 2018 at 103.938%, on or after Feb. 1, 2019 at 102.635%, on or after Feb. 1, 2020 at 101.313% and on or after Feb.1, 2021 at par
|
| Equity clawback: | For up to 35% of issue at 105.25% prior to Feb. 1, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 29
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| Settlement date: | Feb. 3
|
| Ratings: | Moody's: Ba3
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| Standard & Poor's: BB
|
| Price talk: | 5¼% area
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Marketing: | Quick-to-market
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