Veeco Announces Pricing of Private Offering of $125 Million of 3.75% Convertible Senior Notes

About this update from Veeco Instruments Inc.

[{"type":"text","content":"PLAINVIEW, N.Y., May 14, 2020 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (“Veeco”) (NASDAQ: VECO) announced today the pricing of a private offering of $125 million aggregate principal amount of 3.75% Convertible Senior Notes due 2027 (the “notes”). The notes will be offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Veeco also granted the initial purchasers of the notes a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the notes. The closing of the offering is expected to occur on May 18, 2020, subject to customary closing conditions.\n Veeco estimates that the net proceeds from the offering will be approximately $121.9 million (or approximately $140.3 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting fees and expenses payable by Veeco. Veeco intends to use approximately $10.3 million of the net proceeds to pay the cost of the capped call transactions described below, and $81.2 million of the net proceeds from the offering of the notes to repurchase and retire $88.3 million aggregate principal amount of its outstanding 2.70% convertible senior notes due 2023 (the “2023 Notes”) in separate, privately negotiated transactions effected by one or more of the initial purchasers or their affiliates concurrently with the pricing of the notes. Veeco intends to use the remaining net proceeds from the offering for general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, Veeco intends to use the net proceeds from the sale of such additional notes to enter into additional capped call transactions with the capped call counterparties as described below, and Veeco intends to use the remaining net proceeds from the sale of such additional notes for general corporate purposes. Veeco expects that those holders of the 2023 Notes that sell their 2023 Notes may enter into or unwind various derivatives with respect to Veeco’s common stock and/or purchase or sell shares of Veeco’s common stock in the market to hedge their exposure in connection with these transactions. In particular, Veeco expects that some holders of the 2023 Notes employ a convertible arbitrage strategy with...

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