Veeco Instruments talks $150 million seven-year convertibles to yield 3.25%-3.75%, up 32.5%-37.5%

By Abigail W. Adams

Portland, Me., May 13 – Veeco Instruments Inc. plans to price $150 million of seven-year convertible notes after the market close on Wednesday with price talk for a coupon of 3.25% to 3.75% and an initial conversion premium of 32.5% to 37.5%, according to a market source.

Barclays is the active bookrunner on the Rule 144A offering, which carries a greenshoe of $22.5 million.

Oppenheimer & Co. Inc. and HSBC Securities (USA) Inc. are passive bookrunners.

The notes are non-callable until June 6, 2024 and then subject to a 130% hurdle above the conversion price.

In connection with the pricing of the notes, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and repurchase a portion of the 2.7% convertible notes due 2023 in privately negotiated transactions.

Veeco Instruments is a Plainview, N.Y.-based manufacturer of semiconductor process equipment.

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