Veeco Instruments completed an exchange of its 3.75% Convertible Senior Notes for shares and cash, enhancing financial flexibility.
Quiver AI Summary
Veeco Instruments Inc. announced the successful completion of exchange transactions involving its outstanding 3.75% Convertible Senior Notes due 2027. This strategic move was designed to enhance the company's balance sheet following the maturity of its 2025 Notes. The exchange involved converting approximately $25 million of 2027 Notes into roughly 1.6 million newly issued shares of common stock and around $5.4 million in cash, which includes accrued interest, thereby reducing ongoing interest expenses and overall debt. The transactions were facilitated in accordance with securities regulations and aim to provide the company with greater financial flexibility.
Potential Positives
- Veeco has strengthened its balance sheet by successfully addressing the outstanding 3.75% Convertible Senior Notes due 2027, enhancing financial stability.
- The transaction reduces ongoing interest expenses, contributing to improved financial efficiency for the company.
- The exchange involved approximately 1.6 million newly issued shares of common stock, effectively managing existing debt levels while providing liquidity through cash settlements.
Potential Negatives
- The exchange of the 2027 Notes for shares and cash may dilute existing shareholders' equity, as it involves the issuance of approximately 1.6 million new shares of common stock.
- The need to complete exchange transactions for outstanding debt could signal potential liquidity issues or financial pressures facing the company.
- The company did not provide specific details on the resulting changes to its overall debt levels or financial health, which may raise concerns among investors about the long-term stability of its financial position.
FAQ
What recent transaction did Veeco Instruments complete?
Veeco completed separate exchange transactions with holders of its outstanding 3.75% Convertible Senior Notes due 2027.
How much debt did Veeco reduce through the exchange?
Veeco reduced its outstanding debt by exchanging approximately $25.0 million in 2027 Notes.
What benefits did Veeco gain from the transaction?
The transaction provided greater financial flexibility and reduced ongoing interest expense for Veeco.
How many shares were issued to exchange the 2027 Notes?
Veeco issued approximately 1.6 million newly created shares of common stock during the exchange.
Who acted as Veeco's financial advisor for the exchange?
ICR Capital LLC served as the financial advisor for Veeco during the exchange transactions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$VECO Insider Trading Activity
$VECO insiders have traded $VECO stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.
Here’s a breakdown of recent trading of $VECO stock by insiders over the last 6 months:
- JOHN P KIERNAN (SVP & CHIEF FINANCIAL OFFICER) has made 0 purchases and 5 sales selling 12,500 shares for an estimated $305,650.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$VECO Hedge Fund Activity
We have seen 125 institutional investors add shares of $VECO stock to their portfolio, and 141 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- CHANNING CAPITAL MANAGEMENT, LLC removed 1,869,665 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $37,542,873
- WEALTHFRONT ADVISERS LLC removed 1,107,300 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $22,234,583
- FMR LLC removed 1,017,263 shares (-86.9%) from their portfolio in Q1 2025, for an estimated $20,426,641
- WESTFIELD CAPITAL MANAGEMENT CO LP removed 520,741 shares (-33.0%) from their portfolio in Q1 2025, for an estimated $10,456,479
- ADAGE CAPITAL PARTNERS GP, L.L.C. removed 512,860 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $13,744,648
- WASATCH ADVISORS LP added 445,976 shares (+16.0%) to their portfolio in Q1 2025, for an estimated $8,955,198
- NEW YORK STATE COMMON RETIREMENT FUND removed 415,584 shares (-95.9%) from their portfolio in Q1 2025, for an estimated $8,344,926
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
PLAINVIEW, N.Y., May 15, 2025 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (NASDAQ: VECO) (the “Company” or “Veeco”) today announced that the Company completed separate exchange transactions (the “Exchanges”) pursuant to privately negotiated exchange agreements with the holders of all of its outstanding 3.75% Convertible Senior Notes due 2027 (the “2027 Notes”).
“Veeco has strengthened our balance sheet by proactively addressing our 2027 Notes following the settlement of our 2025 Notes at maturity in January,” said John Kiernan, Chief Financial Officer of Veeco. “These transactions provide greater financial flexibility, in addition to reducing our ongoing interest expense and outstanding debt.”
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 based on the conversion ratio of 71.5372 shares per $1,000 principal amount of the 2027 Notes. 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.
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.
About Veeco
Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit
www.veeco.com
.
To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.
Veeco Contacts:
Investors: Anthony Pappone | (516) 500-8798 |
apappone@veeco.com
Media: Javier Banos | (516) 673-7328 |
jbanos@veeco.com
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