Micron offering $1.1B in notes for capital, capex

May 17, 2007 – Micron says it will offer $1.1 billion in convertible senior notes due June 2014, plus an extra $165 million if overallotments are met. Part of the proceeds will help pay for costs involved in the notes offering; the rest will be used for “general corporate purposes,” including working capital and capex investments. Interest rate, conversion price, and other terms will be determined later.

Doug Freedman, analyst with American Technology Research, noted that the proceeds will help Micron keep funding its IM Flash JV with Intel and upgrade equipment, but he doesn’t see any M&A activity in the near term. “The financing firms up the balance sheet during this prolonged pricing contraction more than anything else,” h wrote in a research note.


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