Seeking Alpha

Micron issuing $750M in debt to get rid of convertible obligations

  • Micron (MU -0.7%) is selling $750M worth of senior notes due 2025.
  • The memory giant will use some of the proceeds to "extinguish its obligations" for 1.875% convertible notes due 2031, a move that could include "payments in settlement of conversions of or to repurchase or redeem such notes." The remaining proceeds will be used to retire other convertible debt, and for "other general corporate purposes."
  • Micron had $4.3B in cash and short-term investments as of May 29, and $5.6B in debt.
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Comments (8)
  • Rhinoish
    , contributor
    Comments (118) | Send Message
     
    about damn time
    23 Jul 2014, 01:02 PM Reply Like
  • Cygnusx3
    , contributor
    Comments (209) | Send Message
     
    Don' t understand the implications.
    23 Jul 2014, 01:06 PM Reply Like
  • Retired Securities Attorney
    , contributor
    Comments (2915) | Send Message
     
    Cygnus,

     

    Outstanding shares will go down increasing EPS since the convertible debt is in the money. Micron finally got the point.
    23 Jul 2014, 01:13 PM Reply Like
  • Tai Yu
    , contributor
    Comments (827) | Send Message
     
    Debt/Equity for SNDK is 0.3 vs 0.58 for MU. Fed may raise interest rate by mid '15 and I believe MU is on the right track.
    23 Jul 2014, 01:06 PM Reply Like
  • getgl
    , contributor
    Comments (692) | Send Message
     
    This is good news. Glad they saw the light. Many excellent writers on SA have pointed out this issue. Long and strong. Even stronger now.
    23 Jul 2014, 01:08 PM Reply Like
  • thenoffya
    , contributor
    Comments (162) | Send Message
     
    Electric Phred should be much happier today.... hope we get an article about this!
    23 Jul 2014, 01:15 PM Reply Like
  • Retired Securities Attorney
    , contributor
    Comments (2915) | Send Message
     
    Where's Electric Phred's victory dance?
    23 Jul 2014, 01:16 PM Reply Like
  • 20322211
    , contributor
    Comments (180) | Send Message
     
    I'll sub for Phred in the meantime:

     

    "Convertibles? Did some just say convertibles?"
    23 Jul 2014, 01:34 PM Reply Like
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