Stock Update (NASDAQ:MU): Micron Technology, Inc. Announces Proposed $1 Billion Offering of Senior Notes

Micron Technology, Inc. (NASDAQ:MU) announced that it intends to offer, subject to market and other considerations, $500 million aggregate principal amount of senior notes due 2024 (the “2024 Notes”) and $500 million aggregate principal amount of senior notes due 2026 (the “2026 Notes,” and together with the 2024 Notes, the “Notes”) through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

The interest rate, redemption provisions and other terms of the Notes will be determined by negotiations between Micron and the initial purchasers.

Micron intends to use the net proceeds from the offering to repay, repurchase or make other payments with respect to the extinguishment of its debt, including its convertible notes, and for general corporate purposes.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the foregoing securities, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. (Original Source)

Shares of Micron closed last Friday at $29.2 . MU has a 1-year high of $36.59 and a 1-year low of $24.19. The stock’s 50-day moving average is $27.87 and its 200-day moving average is $31.03.

On the ratings front, Micron¬†has been the subject of a number of recent research reports. In a report issued on April 2, Credit Suisse analyst John Pitzer maintained a Buy rating on MU, with a price target of $50, which implies an upside of 71.2% from current levels. Separately, on the same day, Needham’s Rajvindra Gill maintained a Buy rating on the stock and has a price target of $50.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Pitzer and Rajvindra Gill have a total average return of 22.0% and 24.5% respectively. Pitzer has a success rate of 68.5% and is ranked #97 out of 3581 analysts, while Gill has a success rate of 63.4% and is ranked #30.

The street is mostly Bullish on MU stock. Out of 21 analysts who cover the stock, 17 suggest a Buy rating , 3 suggest a Hold and one recommend to Sell the stock. The 12-month average price target assigned to the stock is $39.53, which implies an upside of 35.4% from current levels.

Micron Technology Inc is a manufacturer and marketer of DRAM, NAND Flash memory, CMOS image sensors and other semiconductor components. It has two segments, Memory and Imaging.

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