Novellus Announces Offering of $525 Million Senior Convertible Notes Due 2041 (NVLS)

Novellus Systems, Inc. NVLS today announced that it proposes to offer $525 million principal amount of senior convertible notes, subject to market conditions and other factors. The notes would be due in May 2041 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 redeemable by Novellus under certain circumstances beginning in 2021. The notes will be convertible, subject to certain conditions, into cash up to the principal amount of the notes and into shares of Novellus' common stock in respect of the remainder, if any, of the conversion obligation in excess of the principal amount of the notes. The conversion rate and other terms will be determined by negotiations between Novellus and the initial purchasers of the notes. Novellus also intends to grant to the initial purchasers of the notes the right to purchase up to an additional $75 million principal amount of notes solely to cover overallotments.