Micron Technology Inc. (NASDAQ:MU), a leading semiconductor manufacturer, announced on Thursday the completion of a $1 billion senior note offering. The Boise, Idaho-based company stated that the notes carry a 5.80% interest rate and are due in 2035.
The company made the offering public through a registration statement and prospectus supplements filed with the Securities and Exchange Commission (SEC). The sale of these senior notes was settled on January 16, 2025.
The notes were issued under an existing indenture agreement with U.S. Bank Trust Company, National Association, as trustee. The indenture includes covenants and provisions standard for such agreements, including restrictions on the company’s ability to incur liens, engage in sale and lease-back transactions, and requirements in the event of a merger, consolidation, or sale of substantially all assets.
Micron has the option to redeem the notes before their maturity date at a specified redemption price and must offer to repurchase the notes if certain change of control events occur. The company specified that the net proceeds from the note offering would be used to redeem its outstanding 4.975% Senior Notes due 2026 and for general corporate purposes, which may include repaying other debts.
The announcement comes alongside a notice issued by Micron on January 13, 2025, to redeem the entirety of its 2026 Notes, which will be conducted in accordance with the terms of the indenture governing those notes.
The information for this article was obtained from a recent 8-K filing with the Securities and Exchange Commission.
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