Novellus greenshoe lifts 2.625% convertibles to $700 million

By Melissa Kory

Cleveland, May 10 - Novellus Systems, Inc. said that underwriters exercised in full the $100 million over-allotment option, lifting the company's offering of 2.625% senior convertible notes due 2041 to $700 million.

Novellus priced an upsized $600 million of the 30-year convertible notes after the market close May 4 at par to yield 2.625% with an initial conversion premium of 20%.

Initially, the Rule 144A deal was going to be $525 million in size with a $75 million greenshoe.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the joint bookrunners.

The notes will be non-callable until May 21, 2021 and then will be provisionally callable at a price hurdle of 150%. There are no puts.

Proceeds will be used to repurchase shares from initial purchasers of the notes in privately negotiated transactions and for general corporate purposes, which may include acquisitions of complementary businesses, products or technologies.

San Jose, Calif.-based Novellus is a semiconductor equipment maker.

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