BOISE, USA - Micron Technology, Inc., (Nasdaq:MU) today announced that the company, in privately-negotiated transactions, had repurchased approximately $26million in aggregate principal amount of its 1.875% Convertible Senior Notes
due 2031 (the "2031B Notes") for $65 million in cash, approximately $100 million in aggregate principal amount of its 2.375%
Convertible Senior Notes due 2032 (the "2032C Notes") for $249 million in cash and approximately $38 million in aggregate principal amount of its 3.125% Convertible Senior Notes due 2032 (the "2032D Notes") for $93 million in cash. The company anticipates that the closings of these repurchases will be completed by January 28, 2014.
Following the closings of these repurchases, the company estimates that approximately $114 million in aggregate principal amount of 2031B Notes, approximately $451 million in aggregate principal amount of 2032C Notes, and approximately $412 million in aggregate principal amount of 2032D Notes will remain outstanding. The company expects to record a charge in the second quarter of fiscal 2014 of approximately $10 million associated with the repurchases of the notes.
"The transactions we announced today reduced the dilutive effect of our existing convertible notes," said Ron Foster, Micron vice president and CFO. "We eliminated approximately 10 million shares from our current dilutive share count, assuming a $23 stock price, and reduced the outstanding principal amount of our debt by approximately $164 million. Since last November, we have reduced the dilutive effects of our convertible notes by approximately 52 million shares based on a $23
stock price."
