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Veeco Announces Proposed Private Offering of $150 Million of Convertible Senior Notes
PLAINVIEW, N.Y., May 13, 2020 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (“Veeco”) (NASDAQ: VECO) announced today that it intends to offer, subject to market
About this update from Veeco Instruments Inc.
[{"type":"text","content":"PLAINVIEW, N.Y., May 13, 2020 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (“Veeco”) (NASDAQ: VECO) announced today that it intends to offer, subject to market and other conditions, $150 million aggregate principal amount of Convertible Senior Notes due 2027 (the “notes”) in a private offering. 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 expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $22.5 million aggregate principal amount of the notes.\n Veeco intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below, and the remaining net proceeds from the offering of the notes to repurchase and retire a portion 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. To the extent that Veeco is unable to repurchase the anticipated amount of its outstanding 2023 Notes with the net proceeds from the offering, Veeco intends to use any 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 the repurchase or other retirement of additional outstanding 2023 Notes and/or other 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 many holders of the 2023 Notes employ a convertible arbitrage strategy with respect to the 2023 Notes and have a short position with respect to Veeco’s common stock that they would close, through purchase...