Intel has confirmed that it is raising $6 billion through sale of three series of notes as it looks to repurchase common stock shares and fund more general “corporate purposes”.
Intel has tapped J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated as joint book-running managers. The company last raised funds through US debt markets back in September 2011, when raised $5 billion, and this new deal is its second offering since 2009, according to Nasdaq.
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The company explains the duration periods and interest rates of each series:
Of these notes, $3.0 billion will mature on Dec. 15, 2017 and will bear interest at an annual rate of 1.35%, $1.5 billion will mature on Dec. 15, 2022 and will bear interest at an annual rate of 2.70%, $750 million will mature on Dec. 15, 2032 and will bear interest at an annual rate of 4.0%, and $750 million will mature on Dec. 15, 2042 and will bear interest at an annual rate of 4.25%.
The notes were offered to the public at a price of 99.894% of par in the case of the 2017 notes, 99.573% of par in the case of the 2022 notes, 99.115% of par in the case of the 2032 notes and 99.747% of par in the case of the 2042 notes. The offering is expected to close on Dec. 11, 2012, subject to customary closing conditions.
Intel posted third quarter 2012 revenues of $13.5 billion, with operating income of $3.8 billion, net income of $3.0 billion and earnings per share (EPS) of $0.58. Of the $5.1 billion cash generated, $1.2 billion was used to repurchase shares.
Next year will see a big change at the top when CEO Paul Otellini steps down from his position in May, ending his 40 year association with the technology giant.
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