By Cristal Cody
Chicago, May 6 – Qualcomm Inc. priced $1.5 billion of notes in two parts (A2/A) on Thursday, according to information from a market source and additional details from an earlier 424B2 filing with the Securities and Exchange Commission.
A $500 million tranche of 10-year notes priced with a 4.25% coupon. The spread priced as 120 basis points over Treasuries, versus talk in the 145 bps area.
The bulk of the deal, $1 billion of 4.5% notes with a 30-year tenor, priced with a 145 bps spread over Treasuries, versus talk in the 170 bps area.
Both notes have make-whole calls and then par calls.
BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunning managers.
The proceeds will be used to repay at maturity the company’s $1.5 billion of debt due May 2022 and the excess, if any, for general corporate purposes.
Based in San Diego, Qualcomm creates semiconductors, software and services related to wireless technology.
| Issuer: | Qualcomm Inc.
|
| Amount: | $1.5 billion
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| Issue: | Senior notes
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | May 5
|
| Ratings: | Moody’s: A2
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| S&P: A
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| Distribution: | SEC registered
|
|
|
| 2032 notes
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| Amount: | $500 million
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| Maturity: | May 20, 2032
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| Coupon: | 4.25%
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| Spread: | Treasuries plus 120 bps
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| Call features: | Make-whole call, then par call
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| Price talk: | Treasuries plus 145 bps area
|
|
|
| 2052 notes
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| Amount: | $1 billion
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| Maturity: | May 20, 2052
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| Coupon: | 4.5%
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| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call, then par call
|
| Price talk: | Treasuries plus 170 bps area
|
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