- Senior notes are bonds that need be repaid before most other debts in the event that the issuer declares bankruptcy
- Micron intends to use the net proceeds of the offering to repay a portion of the outstanding borrowings under its existing revolving credit facility
Micron Technology, (Micron) has entered into an agreement to sell $1.25 billion aggregate principal amount of its 2.497 per cent Senior Notes due 2023 pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (SEC).
The semiconductor company, in its second quarter that ended on 27 February 2020, posted revenue of $4.80 billion. Micron had posted revenue of $5.14 billion during the prior quarter and $5.84 billion during the same period last year.
“Micron delivered solid second quarter results and revenue at the high end of the guidance range, despite the unfolding COVID-19 pandemic,” Micron Technology president and CEO Sanjay Mehrotra had said in March 2020.
Repaying a portion of the outstanding borrowings
The company informed that it intends to use the net proceeds of the offering to repay a portion of the outstanding borrowings under its existing revolving credit facility. It has filed an effective registration statement (including a preliminary prospectus supplement and accompanying base prospectus) with the SEC for the offering to which this communication relates.
Micron had previously committed $35 million to help those disproportionately affected by COVID-19. It has said that a new Micron Foundation $10 million relief fund will be setup.
“We are deeply concerned about the effects this pandemic is having on our Micron team members,” said April Arnzen, senior vice president of Human Resources at Micron Technology. “Our Micron COVID-19 assistance payment aims to give our people, who are critical to the strength of our business, some financial relief.”
Citigroup Global Markets Inc, Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. LLC are the joint book-running managers of the notes offering.
