By Cristal Cody
Chicago, April 6 – Marvell Technology, Inc.’s three-part offering of notes sold on Monday (Baa3/BBB-) were detailed by a market source.
Details included the spreads, which had not previously been reported.
The deal includes $500 million of 1.65% senior notes due April 15, 2026 priced with a spread of Treasuries plus 75 basis points. Guidance was in the Treasuries plus 80 bps area, which came down from initial talk in the Treasuries plus 105 bps to 110 bps 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 priced with a Treasuries plus 105 bps spread after guidance 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 and a spread of Treasuries plus 125 bps. The notes were being guided 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%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 80 bps, plus or minus 5 bps; initial price talk in the Treasuries plus 105 bps to 110 bps area
|
|
|
| 2028 notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2028
|
| Coupon: | 2.45%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 110 bps area, plus or minus 5 bps; tightened from initial price talk in the Treasuries plus 135 bps area
|
|
|
| 2031 notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2031
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 125 bps
|
| Price talk: | Treasuries plus 130 bps area, plus or minus 5 bps; tightened from initial price talk in the Treasuries plus 155 bps to 160 bps area
|
|
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