By Marisa Wong
Los Angeles, May 14 – Veeco Instruments Inc. priced a downsized $125 million of seven-year convertible notes after the market close on Wednesday at par with a coupon of 3.75% and an initial conversion premium of 32.5%, according to a press release.
Price talk was for a coupon of 3.25% to 3.75% and an initial conversion premium of 32.5% to 37.5%, as previously reported.
Barclays is the active bookrunner on the Rule 144A offering, which carries an over-allotment option of $18.75 million.
Oppenheimer & Co. Inc. and HSBC Securities (USA) Inc. are passive bookrunners.
The deal was decreased from $150 million, and the greenshoe was reduced from $22.5 million.
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 company’s 2.7% convertible notes due 2023 in privately negotiated transactions.
Veeco Instruments is a Plainview, N.Y.-based manufacturer of semiconductor process equipment.
| Issuer: | Veeco Instruments Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $125 million
|
| Greenshoe: | $18.75 million
|
| Maturity: | June 1, 2027
|
| Bookrunners: | Barclays (active); Oppenheimer & Co. Inc. and HSBC Securities (USA) Inc. (passive)
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $13.98
|
| Conversion rate: | 71.5372
|
| Contingent conversion: | Yes
|
| Call options: | Non-callable until June 6, 2024, then subject to a 130% hurdle
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 3.25%-3.75% and initial conversion premium of 32.5%-37.5%
|
| Stock symbol: | Nasdaq: VECO
|
| Stock price: | $10.55 at market close May 13
|
| Market capitalization: | $492.28 million
|
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