Ilumina (ILMN) prices its offering of $550M aggregate principal amount 0% convertible senior notes due 2019 and $450M aggregate principal amount 0.5% convertible senior notes due 2021. Underwriters over-allotments are $82.5M of the 2019 notes and $67.5M of the 2021 notes. Closing date is June 11.
The notes are convertible into cash, shares of ILMN stock or a combination thereof, at the company's election. The initial conversion rate of both issues is 3.9318 shares of common stock per $1,000 principal amount ($254.34/share).
Net proceeds from both issues will be ~$985M and will be used to repurchase up to $600M aggregate principal amount of its outstanding 0.25% convertible senior notes due 2016.