News Article
Investment & Expansion
Micron Technology is offering $550mn of convertible subordinated notes due
in 2010 to qualified institutional buyers. The notes will bear interest at a
rate of 2.50% per year, will be convertible into the companys common stock
at a conversion price of $11.79 per share and will be subordinated to all
present and future senior debt of Micron. The sale of the notes is expected
to close on February 4, 2003.
Micron Technology is offering $550mn of convertible subordinated notes due
in 2010 to qualified institutional buyers. The notes will bear interest at a
rate of 2.50% per year, will be convertible into the companys common stock
at a conversion price of $11.79 per share and will be subordinated to all
present and future senior debt of Micron. The sale of the notes is expected
to close on February 4, 2003.
Micron plans to use the net proceeds for general corporate purposes
(including working capital, capital expenditures and research and
development) and to facilitate transitions to new product and process
technologies. In particular, money will be used to develop 0.11micron line
width and 300mm wafer processing. Micron will also use $95mn to enter into
call spread options on its common stock to limit exposure to potential
dilution from conversion of the notes.
Micron has previously preferred to focus on process shrinks rather than
developing 300mm technology to increase productivity (Bulletin 441, July 15,
2002). The company wanted to wait for others to sort out the problems of
300mm production and to create the economic necessity.
in 2010 to qualified institutional buyers. The notes will bear interest at a
rate of 2.50% per year, will be convertible into the companys common stock
at a conversion price of $11.79 per share and will be subordinated to all
present and future senior debt of Micron. The sale of the notes is expected
to close on February 4, 2003.
Micron plans to use the net proceeds for general corporate purposes
(including working capital, capital expenditures and research and
development) and to facilitate transitions to new product and process
technologies. In particular, money will be used to develop 0.11micron line
width and 300mm wafer processing. Micron will also use $95mn to enter into
call spread options on its common stock to limit exposure to potential
dilution from conversion of the notes.
Micron has previously preferred to focus on process shrinks rather than
developing 300mm technology to increase productivity (Bulletin 441, July 15,
2002). The company wanted to wait for others to sort out the problems of
300mm production and to create the economic necessity.