Lam Research Corporation Announces Intention to Offer $700 Million of Convertible Notes (LRCX)

Lam Research Corporation LRCX today announced that it proposes to offer $700 million of convertible senior notes, subject to market conditions and other factors. The notes would be issued in two tranches of $350 million each due in May 2016 and May 2018, respectively, and are to be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will be convertible, upon certain conditions, into cash up to their principal amount and, with respect to any excess conversion value, shares of Lam Research common stock. The interest rate, conversion rate, offering price and other terms will be determined by negotiations between the company and the initial purchasers of the notes. The company also expects to grant to the initial purchasers the right to purchase an additional $50 million of each tranche to cover over-allotments.