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Published on 4/5/2021 in the Prospect News Investment Grade Daily.

New Issue: Marvell Technology sells $2 billion three-part offering of notes

Chicago, April 5 – Marvell Technology, Inc. sold a three-part offering of notes on Monday (Baa3/BBB-), according to an 8-K filing with the Securities and Exchange Commission.

The deal includes $500 million of 1.65% senior notes due April 15, 2026. Guidance was in the Treasuries plus 80 basis points area, according to a market source.

A middle tranche of $750 million of notes comes with a 2.45% coupon and a maturity date of April 15, 2028. The notes were is guided in the Treasuries plus 110 bps area, tightened from initial price talk in the 135 bps area.

The longest-dated tranche due April 15, 2031 comes sized at $750 million and with a 2.95% coupon. The notes were being talked in the 130 bps area over Treasuries after initial price talk started in the Treasuries plus 155 bps to 160 bps area.

BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are working as bookrunners on the deal.

The notes are being sold in connection with the previously announced acquisition of Inphi Corp.

Marvell’s acquisition of Inphi is expected to close in April, pending approval by Inphi’s stockholders and Marvell’s shareholders, as well as satisfaction of customary closing conditions, according to an 8-K filing with the Securities and Exchange Commission.

The transaction was announced in October 2020 as a $10 billion transaction.

The notes are not conditioned upon the consummation of the Inphi transaction; however, if the transaction is not consummated by March 1, 2022, Marvell will be required to redeem all of the notes at 101.

Marvell is a Hamilton, Bermuda-based provider of storage, networking and connectivity solutions.

Issuer:Marvell Technology, Inc.
Issue:Senior notes
Amount:$2 billion
Bookrunners:BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
Call features:At 101 if Inphi transaction is not completed by March 1, 2022
Trade date:April 5
Settlement date:April 12
Ratings:Moody’s: Baa3
S&P: BBB-
2026 notes
Amount:$500 million
Maturity:April 15, 2026
Coupon:1.65%
Price talk:Treasuries plus 80 bps
2028 notes
Amount:$750 million
Maturity:April 15, 2028
Coupon:2.45%
Price talk:Treasuries plus 110 bps area, tightened from initial price talk in the 135 bps area
2031 notes
Amount:$750 million
Maturity:April 15, 2031
Coupon:2.95%
Price talk:Treasuries plus 130 bps, tightened from initial price talk in the Treasuries plus 155 bps to 160 bps area

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