Micron announced today that it has entered into an agreement to sell $900 million aggregate principal amount of its 4.185% Senior Notes due 2027 (the “2027 Notes”) and $850 million aggregate principal amount of its 4.663% Senior Notes due 2030 (the “2030 Notes” and, together with the 2027 Notes, the “notes”) pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the “SEC”). The offering is expected to settle on July 12, 2019, subject to customary closing conditions.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint book-running managers of the notes offering.
The 2027 Notes will bear interest at a rate of 4.185% per year and the 2030 Notes will bear interest at a rate of 4.663% per year. Interest on each series of notes will be payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2020.
Micron estimates net proceeds of the offering, after deducting underwriter discounts and other estimated offering expenses, will be approximately $1.739 billion. Micron intends to use a substantial portion of the net proceeds of the offering to fund the purchase price for Intel Corporation’s (“Intel”) noncontrolling interest in IM Flash Technologies, LLC (“IM Flash”) and IM Flash debt owed to Intel. Micron intends to use the remaining net proceeds from the offering for general corporate purposes, which may include capital expenditures, working capital, and the repayment, repurchase, redemption or other retirement of its other existing indebtedness.