Broadcom gives early results of exchange offer for seven note series

By Sarah Lizee

Olympia, Wash., May 19 – Broadcom Inc. announced the early results of its offer to exchange seven series of notes issued by the company, Broadcom Corp. and CA, Inc. for up to $2.2 billion of new notes due Sept. 15, 2026 and up to $3.75 billion of new notes due Sept. 15, 2028, according to a press release.

The early participation deadline was 5 p.m. ET on May 18. The company said it has decided to have an early settlement on May 21 for existing notes tendered at or prior to the early participation deadline.

The following amounts were tendered under the pool one exchange, listed in order or acceptance priority level:

• $117,133,000 of the $398.87 million 2.2% senior notes due Jan. 15, 2021 (Cusips: 11134LAJ8, U1108LAE9, 11134LAK5) issued by Broadcom Corp. with pricing to be set using the reference security plus 60 basis points;

• $200,499,000 of the $725,841,000 3.125% senior notes due April 15, 2021 issued by Broadcom Inc. (Cusips: 11135FAA9, U1109MAA4) with pricing to be set using the reference security plus 80 bps;

• $297,061,000 of the $1,138,974,000 3% senior notes due Jan. 15, 2022 issued by Broadcom Corp. (Cusips:11134LAC3, U1108LAB5, 11134LAD1) with pricing to be set using the reference security plus 85 bps;

• $216,359,000 of the $500 million 3.6% senior notes due Aug. 15, 2022 issued by CA (Cusip: 12673PAH8) with pricing to be set using the reference security plus 140 bps; and

• $806.97 million of the $1.5 billion 3.125% senior notes due Oct. 15, 2022 issued by Broadcom Inc. (Cusips: 11135FAC5, U1109MAC0) with pricing to be set using the reference security plus 115 bps.

The reference security used for pricing in the pool one exchange is the 0.125% U.S. Treasury due April 30, 2022.

The following amounts were tendered under the pool two exchange, listed in order or acceptance priority level:

• $1,146,823,000 of the $2.5 billion 3.625% senior notes due Jan. 15, 2024 issued by Broadcom Corp. (Cusips: 11134LAE9, U1108LAC3, 11134LAF6) with pricing to be set using the reference security plus 170 bps; and

• $955,389,000 of the $2 billion 3.625% senior notes due Oct. 15, 2024 issued by Broadcom Inc. (Cusips: 11135FAD3, U1109MAD8) with pricing to be set using the reference security plus 175 bps.

The reference security used for pricing in the pool two exchange is the 0.375% U.S. Treasury due April 30, 2025.

Notes tendered in the pool one group will be exchanged for new notes due 2026, while notes tendered in the pool two group will be exchanged for new notes due 2028.

Pricing for the new notes due 2026 will be set using the 0.375% U.S. Treasury due April 30, 2025 plus 310 bps, and pricing for the new notes due 2028 will be set using the 1.5% U.S. Treasury due Feb. 15, 2030 plus 340 bps.

Pricing was to be set at 11 a.m. ET on May 19.

The exchange offers will expire at midnight ET on June 3. Final settlement is set for June 4.

The total consideration in each exchange pool will include an early participant payment in an amount of $50 payable in applicable new notes for each $1,000 principal amount of each series of existing notes tendered and accepted.

Eligible holders who validly tendered their existing notes for exchange at or prior to the early deadline are eligible to receive the early participant payment.

Tenders may no longer be withdrawn.

The exchange offers are subject to a number of conditions, including, among other things, the issuance of at least $500 million aggregate principal amount of each series of new notes.

The information and tender agent is D.F. King & Co., Inc. (866 416-0577, 212 269-5550).

Barclays (800 438-3242, 212 528-7581) and Credit Suisse Securities (USA) Inc. (800 820-1653, 212 325-2476) are acting as dealer managers.

Broadcom is a San Jose, Calif.-based designer and developer of semiconductor and infrastructure software solutions.

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