Summary
Micron Technology, Inc. (MU) filed an 8-K on July 12, 2019, to report the issuance and sale of $1.75 billion in aggregate principal amount of senior unsecured notes. The offering consists of $900 million of 4.185% notes due February 15, 2027, and $850 million of 4.663% notes due February 15, 2030. The proceeds from this debt issuance are primarily intended to fund the acquisition of Intel Corporation's noncontrolling interest in IM Flash Technologies, LLC, and related debt owed to Intel. The remainder of the proceeds will be used for general corporate purposes, including capital expenditures, working capital, and potential retirement of other existing debt.
Key Highlights
- 1Micron issued $1.75 billion in senior unsecured notes through a public offering.
- 2The notes comprise $900 million of 4.185% senior unsecured notes due 2027 and $850 million of 4.663% senior unsecured notes due 2030.
- 3The offering was conducted under a registration statement on Form S-3.
- 4Primary use of proceeds is to acquire Intel's interest in IM Flash Technologies, LLC and related debt.
- 5The notes are unsecured and rank equally with other senior unsecured indebtedness of Micron.
- 6The company has the option to redeem the notes under specific conditions, including a 'Par Call' provision prior to maturity.
- 7The issuance of notes was accompanied by customary underwriting agreements and supplemental indentures.