New Issue: Qualcomm prices $1.9 billion of senior notes due 2033, 2053

By Wendy Van Sickle and Cristal Cody

Columbus, Ohio, Nov. 7 – Qualcomm Inc. priced $1.9 billion of notes in two parts (A2/A) on Monday, according to information from a market source and additional details from an FWP filing with the Securities and Exchange Commission.

A $700 million tranche of long 10-year notes priced at 99.942 with a 5.4% coupon to yield 5.407%. The spread priced as 120 basis points over Treasuries, versus talk in the 140 bps area.

The $1.2 billion of 6% notes with a long 30-year tenor priced at 99.291 to yield 6.051%, or 170 bps over Treasuries, versus talk in the 195 bps to 200 bps area.

Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Morgan Stanley & Co. LLC are the joint bookrunning managers.

Proceeds will be used to repay at maturity the company’s $946 million of 2.6% notes due Jan. 30, 2023 and the $500 million of outstanding floating-rate notes due Jan. 30, 2023. If there is any excess, the company will use it for general corporate purposes.

Based in San Diego, Qualcomm creates semiconductors, software and services related to wireless technology.

Issuer:	Qualcomm Inc.
Amount:	$1.9 billion
Issue:	Senior notes
Bookrunners:	Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA LLC and Morgan Stanley & Co. LLC
Co-managers:	Credit Suisse Securities (USA) LLC, Loop Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., Great Pacific Securities and Penserra Securities LLC
Trustee:	U.S. Bank Trust Co., NA
Counsel to issuer:	Cravath, Swaine & Moore LLP
Counsel to underwriters:	Davis Polk & Wardwell LLP
Trade date:	Nov. 7
Settlement date:	Nov. 9
Ratings:	Moody’s: A2
	S&P: A
Distribution:	SEC registered
2033 notes
Amount:	$700 million
Maturity:	May 20, 2033
Coupon:	5.4%
Price:	99.942
Yield:	5.407%
Spread:	Treasuries plus 120 bps
Call features:	Make-whole call at Treasuries plus 20 bps until Feb. 20, 2033, then par call
Price talk:	Treasuries plus 140 bps area
Cusip:	747525BS1
2053 notes
Amount:	$1.2 billion
Maturity:	May 20, 2053
Coupon:	6%
Price:	99.291
Yield:	6.051%
Spread:	Treasuries plus 170 bps
Call features:	Make-whole call at Treasuries plus 30 bps until Nov. 20, 2052, then par call
Price talk:	195 bps to 200 bps area
Cusip:	747525BT9

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