Summary
Lam Research Corporation (LRCX) filed an 8-K on March 16, 2016, to disclose adjustments to the conversion rates of its outstanding convertible senior notes. These adjustments affect three series of notes: the 0.50% Convertible Senior Notes due 2016, the 1.25% Convertible Senior Notes due 2018, and the 2.625% Senior Convertible Notes due 2041. The notices were distributed to the respective noteholders, as required by the governing indentures. For investors holding these convertible notes, the adjustment to the conversion rate is a significant event as it directly impacts the number of shares of common stock they can receive upon conversion. While the 8-K does not provide the specific details of the adjustment calculation or the new rates, it signifies a change that could affect the potential equity upside for bondholders. Investors should consult the exhibits attached to this filing for the precise details of these conversion rate adjustments.
Key Highlights
- 1Lam Research disclosed adjustments to the conversion rates of its convertible senior notes.
- 2The affected notes include the 0.50% Convertible Senior Notes due 2016, 1.25% Convertible Senior Notes due 2018, and 2.625% Senior Convertible Notes due 2041.
- 3Notices of these adjustments were distributed to the respective noteholders.
- 4The adjustments are made pursuant to the terms of the indentures governing these notes.
- 5The filing references specific exhibits (99.1, 99.2, 99.3) containing the detailed notices of adjustment.
- 6This disclosure is made under Regulation FD and is furnished, not filed, meaning it does not impact the liabilities under Section 18 of the Exchange Act.