Illumina to offer $650 million convertible senior notes

Illumina, announced its intention to offer, subject to market and other conditions, approximately $650 million aggregate principal amount of convertible senior notes due 2023 (the “Notes”). Illumina also intends to grant the initial purchasers a 30-day option to purchase up to an additional $100 million in aggregate principal amount of the Notes, for a total potential offering size of $750 million.

Illumina intends to use the net proceeds of the offering to repurchase up to $150 million of its common stock concurrently with this offering in privately negotiated transactions effected with or through the initial purchasers and/or their affiliates, and Illumina intends to use the remainder of the net proceeds of the offering for general corporate purposes, which may include the repayment of its 0.0% Convertible Senior Notes due 2019.

The Notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act“), and will be convertible under certain circumstances. Upon conversion, holders will receive, at Illumina’s election, cash, shares of Illumina’s common stock or a combination thereof. The interest rate, conversion rate and other terms of the Notes will be determined by negotiations between Illumina and the initial purchasers of the Notes.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities. Any offers of the Notes will be made only by means of a private offering memorandum. The Notes and any shares of Illumina common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Our ability to consummate the offering is subject to market conditions.