Veeco greenshoe exercised, upping 2.875% convertibles to $230 million

By William Gullotti

Buffalo, N.Y., May 22 – Underwriters for Veeco Instruments Inc.’s offering of 2.875% convertible senior notes due June 1, 2029 exercised the $25 million greenshoe in full, raising the size of the deal to $230 million on May 19, according to an 8-K filing with the Securities and Exchange Commission on Monday.

As previously reported, the company originally priced $205 million of the of six-year convertibles after the market close on May 16 at par with a coupon of 2.875% and an initial conversion premium of 30%. The initial size of the offering was $200 million with a greenshoe of $30 million.

The notes are non-callable until June 8, 2026 and then subject to a 130% hurdle.

Barclays (lead left), Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Goldman Sachs & Co. LLC and Oppenheimer & Co. Inc. were the joint bookrunners for the Rule 144A sale.

With the greenshoe exercised in full, the net proceeds are expected to be $223.3 million. About $198.8 million of the net proceeds will be used to cover the cost of the convertible note exchanges with remaining amounts to be used for general corporate purposes.

Veeco is a Plainview, N.Y.-based producer of process equipment solutions that enable the manufacture of LEDs, power electronics, hard drives, MEMS and wireless chips.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.