Summary
Lam Research Corporation (LRCX) filed a Form 8-K on March 27, 2020, to disclose an adjustment to the conversion rate of its 2.625% Senior Convertible Notes due 2041. This adjustment was made pursuant to the indenture governing these notes, originally issued by Novellus Systems, Inc. The company distributed a formal notice to holders of these convertible notes regarding this specific rate adjustment. While this filing is primarily procedural, it indicates a change affecting the terms of outstanding convertible debt. Investors holding these notes, or considering them, should pay close attention to the details of this conversion rate adjustment, as it impacts the potential equity upside and the economics of the debt instrument. The filing does not provide details on the reason for the adjustment but is a formal notification required under the indenture's terms.
Key Highlights
- 1Lam Research Corporation (LRCX) announced an adjustment to the conversion rate of its 2.625% Senior Convertible Notes due 2041.
- 2The adjustment was made on March 26, 2020, and a notice was distributed to noteholders on March 27, 2020.
- 3This adjustment is governed by the indenture dated May 10, 2011, between Novellus Systems, Inc. and The Bank of New York Mellon Trust Company, N.A.
- 4The filing is made under Regulation FD disclosure (Item 7.01).
- 5The information furnished is not deemed 'filed' for purposes of Section 18 of the Exchange Act.
- 6Exhibit 99.1 contains the formal Notice of Adjustment of Conversion Rate.