Veeco Instruments Inc. has announced the completion of private exchange transactions for its outstanding 3.75% convertible senior notes due 2027. Prior to the exchanges, the 2027 notes had an aggregate principal amount of $25.0 million, representing approximately 1.8 million underlying shares of the company's common stock. In accordance with the terms of the exchanges, the company exchanged the 2027 notes for an aggregate of approximately 1.6 million newly issued shares of its common stock and approximately $5.4 million in cash, inclusive of accrued and unpaid interest.
This move is part of Veeco's proactive approach to address its financial obligations, following the settlement of its 2025 notes at maturity in January. John Kiernan, the Chief Financial Officer of Veeco, emphasized that these transactions provide greater financial flexibility, reduce ongoing interest expense, and decrease outstanding debt.
The exchanges were made pursuant to an exemption from registration provided in section 4(a)(2) of the Securities Act of 1933, as amended. ICR Capital LLC acted as the company's financial advisor in these transactions.
Veeco Instruments Inc. (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment, specializing in technologies integral to the fabrication and packaging of advanced semiconductor devices. The company's equipment is designed to optimize performance, yield, and cost of ownership, and it holds leading technology positions in the markets it serves.
As Veeco continues to address its financial obligations and strengthen its balance sheet, investors and industry analysts will be keen on observing the impact of these transactions on the company's financial metrics and overall performance. As a result of these announcements, the company's shares have moved -0.47% on the market, and are now trading at a price of $21.26. For the full picture, make sure to review VEECO INSTRUMENTS INC's 8-K report.
