New Issue: Micron sells $1.5 billion notes in two parts due in 2028, 2033

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, April 5 – Micron Technology, Inc. priced $1.5 billion of fixed-rate senior notes (Baa3/BBB/BBB-) in two tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The company sold $600 million of 5.375% notes due April 15, 2028 at 99.882 to yield 5.402% with a spread of 205 basis points over Treasuries. Initial talk on the tranche was in the 210 bps area.

Micron priced $900 million of 5.875% notes due Sept. 15, 2033 with a spread of 265 bps over Treasuries (versus talk in the 270 bps area). These notes were priced at 99.505 to yield 5.94%.

The notes will become putable at 101 if there is a change-of-control triggering event.

ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities, Inc. are the joint bookrunners.

A portion of the proceeds is earmarked to repay outstanding borrowings under Micron’s term loan A due October 2024, which as of March 2 had about $1.2 billion in principal outstanding. Amounts borrowed under the loan bear interest at a rate equal to Libor plus 62.5 to 137.5 basis points based on the company’s current corporate credit ratings, which interest rate as of April 4 was 5.55% annually.

The remainder of the proceeds will be used for general corporate purposes.

Micron is a Boise, Idaho-based semiconductor company.

Issuer:	Micron Technology, Inc.
Amount:	$1.5 billion
Description:	Senior notes
Bookrunners:	ANZ Securities, Inc., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Truist Securities, Inc.
Co-managers:	Barclays Capital Inc., BofA Securities, Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, ICBC Standard Bank plc, Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Siebert Williams Shank & Co., LLC and U.S. Bancorp Investments, Inc.
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Wilson Sonsini Goodrich & Rosati, Professional Corp.
Counsel to underwriters:	Simpson Thacher & Bartlett LLP
Trade date:	April 5
Settlement date:	April 11
Ratings:	Moody’s: Baa3
	S&P: BBB
	Fitch: BBB-
Distribution:	SEC registered
2028 bonds
Amount:	$600 million
Maturity:	April 15, 2028
Coupon:	5.375%
Price:	99.882
Yield:	5.402%
Spread:	Treasuries plus 205 bps
Call features:	Make-whole call at Treasuries plus 35 bps until March 15, 2028 and then a par call
Put option:	At 101 following change-of-control triggering event
Price talk:	Treasuries plus 210 bps area
Cusip:	595112CA9
2033 bonds
Amount:	$900 million
Maturity:	Sept. 15, 2033
Coupon:	5.875%
Price:	99.505
Yield:	5.94%
Spread:	Treasuries plus 265 bps
Call features:	Make-whole call at Treasuries plus 40 bps until June 15, 2033 and then a par call
Put option:	At 101 following change-of-control triggering event
Price talk:	Treasuries plus 270 bps area
Cusip:	595112CB7

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