Novellus holders may convert 2.625% notes due to expected merger

By Marisa Wong

Madison, Wis., April 27 - Novellus Systems, Inc. issued a notice of anticipated corporate event and conversion right on March 30 to holders of its 2.625% senior convertible notes due 2041, according to an 8-K filing with the Securities and Exchange Commission.

The anticipated corporate event refers to a merger of Lam Research Corp.'s merger subsidiary, BLMS Inc., with and into Novellus.

Under the terms of the notes, holders may convert their securities beginning on the date of the notice and ending on the earlier of (a) 35 business days after the effective date of the merger and (b) any date on which the company announces that the merger will not take place.

As of March 30, the conversion rate is 25.3139 shares of common stock per $1,000 principal amount of notes, which is equivalent to a $39.50 conversion price. The company's stock closed at $47.11 (Nasdaq: NVLS) on Friday.

Based in San Jose, Calif., Novellus designs, manufactures, markets and services chemical vapor deposition equipment used in making integrated circuits.

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