New Issue: Cymer $200 million convertibles at 3.5% yield, up 22.7%

By Ronda Fears

Nashville, Tenn., Feb. 12 - Cymer Inc. returned to the convertible market with an overnight deal, selling $200 million of seven-year convertible subordinated notes at par to yield 3.5% with a 22.7% initial conversion premium. The Rule 144A deal, via sole lead manager Credit Suisse First Boston, priced at the middle of price talk that put the yield between 3.25% and 3.75% and premium between 20% and 25%.

San Diego, Calif.-based Cymer, which makes lasers used to make semiconductor chips, said proceeds would be used for general corporate purposes and to redeem its $147.3 million of 3.5% convertible subordinated notes due 2004, which step up to 7.25%

Terms of the new deal are:

Issuer: Cymer Inc.

Amount: $200 million

Greenshoe: $50 million

Lead Manager: Credit Suisse First Boston

Co-Manager: Merrill Lynch

Maturity Date: Feb. 15, 2009

Coupon: 3.5%

Issue Price: Par

Yield: 3.5%

Conversion Premium: 22.7%

Conversion Price: $50.00

Conversion Ratio: 20.00

Call: Provisional for three years with 150% trigger

Settlement Date: Feb. 15

End

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