Illumina Announces Pricing of Convertible Senior Notes

  Illumina Announces Pricing of Convertible Senior Notes

Business Wire

SAN DIEGO -- June 6, 2014

Illumina, Inc.(NASDAQ: ILMN) today announced the pricing of an offering
of$550 million aggregate principal amount of its 0% convertible senior notes
due 2019 (the "2019 Notes") and$450 millionaggregate principal amount of its
0.5% convertible senior notes due 2021 (the "2021 Notes" and, together with
the 2019 Notes, the “Notes”). The Notes are being offered to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). Illumina has granted the initial purchasers
an option to purchase up to an additional$82.5 millionaggregate principal
amount of the 2019 Notes and $67.5 million aggregate principal amount of the
2021 Notes on the same terms and conditions referenced above. The 2019 Notes
will not bear interest and will mature onJune 15, 2019, unless earlier
repurchased or converted. Interest on the 2021 Notes will be paid
semi-annually at a rate of 0.50% per year and the Notes will mature onJune
15, 2021, unless earlier repurchased or converted.

The Notes will be convertible, subject to the satisfaction of certain
conditions, into cash, shares of Illumina common stock or a combination
thereof, at Illumina’s election. Prior to March 15, 2019 (in the case of the
2019 Notes) or March 15, 2021 (in the case of the 2021 Notes), the Notes will
be convertible only upon the occurrence of certain events and during certain
periods, and thereafter, at any time through the second scheduled trading day
immediately preceding the maturity date. The initial conversion rate of both
the 2019 Notes and the 2021 Notes is 3.9318 shares of common stock
per$1,000principal amount, which is equivalent to an initial conversion
price of approximately$254.34per share of common stock, subject to
adjustment in certain circumstances. This initial conversion price represents
a premium of 55% relative to the last reported sale price onJune 5, 2014of
Illumina’s common stock of$164.09.

The aggregate net proceeds to Illumina from the offering of the 2019 Notes and
2021 Notes will be approximately$985 million, exclusive of any proceeds
attributable to the initial purchasers' possible exercise of their options to
purchase additional Notes. Illumina expects to use the net proceeds from the
offering and cash on hand to fund repurchases of up to $600 million aggregate
principal amount of its outstanding 0.25% Convertible Senior Notes due 2016
(the “2016 Notes”) through privately negotiated transactions. The offering is
expected to close onJune 11, 2014, subject to customary closing conditions.

Goldman, Sachs & Co. and BofA Merrill Lynch are acting as 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 securities will be made only by
means of a private offering memorandum. The securities and the shares of
Illumina common stock issuable upon conversion or exercise of the securities
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.

Use of forward-looking statements

This release contains forward-looking statements that involve risks and
uncertainties. These forward-looking statements are based on our expectations
as of the date of this release and may differ materially from actual future
events or results. Among the important factors that could cause actual results
to differ materially from those in any forward-looking statements are (i) our
ability to further develop and commercialize our instruments and consumables
and to deploy new products, services, and applications, and expand the
markets, for our technology platforms; (ii) our ability to manufacture robust
instrumentation and consumables; (iii) our ability to successfully identify
and integrate acquired technologies, products, or businesses; (iv) our
expectations and beliefs regarding future conduct and growth of the business
and the markets in which we operate; (v) challenges inherent in developing,
manufacturing, and launching new products and services; and (vi) our ability
to maintain our revenue levels and profitability during periods of research
funding reduction or uncertainty and adverse economic and business conditions,
together with other factors detailed in our filings with the Securities and
Exchange Commission, including our most recent filings on Forms 10-K and 10-Q,
or in information disclosed in public conference calls, the date and time of
which are released beforehand. We undertake no obligation, and do not intend,
to update these forward-looking statements, to review or confirm analysts’
expectations, or to provide interim reports or updates on the progress of the
current financial quarter.

About Illumina

Illumina ( is a leading developer, manufacturer, and marketer
of life science tools and integrated systems for the analysis of genetic
variation and function. We provide innovative sequencing and array-based
solutions for genotyping, copy number variation analysis, methylation studies,
gene expression profiling, and low-multiplex analysis of DNA, RNA, and
protein. We also provide tools and services that are fueling advances in
consumer genomics and diagnostics. Our technology and products accelerate
genetic analysis research and its applications, paving the way for molecular
medicine and ultimately transforming healthcare.


Illumina, Inc.
Rebecca Chambers, 858-255-5243
Eric Endicott, 858-882-6822
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