Lazard Capital Markets Comments on Micron Technology

Lazard Capital Markets has published a report on Micron Technology MU. In the report, Lazard wrote, "Debt offering paves the way for a stronger MU; positive for shareholders. The offering. MU offered two tranches of $300M convertible senior notes due August 1, 2031, one at 1.5% interest and the other at 1.875%, both paid semi-annually. The overallotment option is $45M in principal for each. Holders can require MU to repurchase the 1.5% Notes on Aug. 1, 2018 and the 1.875% Notes on Aug. 1, 2020. Conversions. The initial conversion price for each is $9.50/share, a 25% premium to yesterday's close. After 2013 for the 1.5% notes and 2014 for the 1.875% notes, holders may redeem the notes for cash in total or in part if the last reported sale price of the stock is >129% of the conversion price for at least 20 trading days during any 30 consecutive trading day period ending within five business days prior to MU's notice of redemption. The redemption price will be equal to the principal amount plus accrued and unpaid interest plus a make-whole premium. If MU redeems the 1.5% Notes prior to Aug. 2015 or the 1.875% Notes prior to Aug. 2016, MU will pay, in cash, an amount equal to the PV of the remaining interest." Lazard rated Micron Technology a BUY with a price target of $12. Micron Technology closed Thursday at $7.84.