By Aleesia Forni
Virginia Beach, May 13 – Qualcomm Inc. sold $10 billion of senior notes (A1/A+/) on Wednesday in eight tranches, according to a market source.
A $1.25 billion issue of 1.4% notes due May 18, 2018 priced at 99.866 to yield 1.446%, or Treasuries plus 50 basis points.
A $250 million floating-rate note due May 18, 2018 sold at par to yield Libor plus 27 bps.
The company also priced $1.75 billion of 2.25% notes due May 20, 2020 at 99.92 to yield 2.267%.
The notes sold with a spread of Treasuries plus 70 bps.
A $250 million tranche of floating-rate notes due May 20, 2020 priced at par to yield Libor plus 55 bps.
There was also a $2 billion 3% note due May 20, 2022 priced at 99.962 to yield 3.006%, or 100 bps over Treasuries.
A $2 billion tranche of 3.45% notes due May 20, 2025 priced at 99.64 to yield 3.493%, or Treasuries plus 120 bps.
There was a $1 billion tranche of 4.65% notes due May 20, 2035 sold at 99.562 to yield 4.684%.
The issue sold at a spread of Treasuries plus 160 bps.
Finally, $1.5 billion of 4.8% notes due May 20, 2045 priced at 99.464 to yield 4.834%, or Treasuries plus 175 bps.
The bookrunners were BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, which may include funding the company’s capital return program and acquisitions.
The San Diego-based company designs, develops, manufactures and markets wireless telecommunications products and services.
| Issuer: | Qualcomm Inc.
|
| Issue: | Senior notes
|
| Amount: | $10 billion
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC
|
| Trade date: | May 13
|
| Settlement date: | May 20
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 18, 2018
|
| Coupon: | 1.4%
|
| Price: | 99.866
|
| Yield: | 1.446%
|
| Spread: | 50 bps
|
| Price guidance: | 50 bps area, tightened from 60 bps area
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | May 18, 2018
|
| Coupon: | Libor plus 27 bps
|
| Price: | Par
|
| Yield: | Libor plus 27 bps
|
| Price guidance: | Libor equivalent
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 20, 2020
|
| Coupon: | 2.25%
|
| Price: | 99.92
|
| Yield: | 2.267%
|
| Spread: | 70 bps
|
| Price guidance: | 75 bps area, tightened from 80 bps area
|
|
|
| Five-year floaters
|
| Amount: | $250 million
|
| Maturity: | May 20, 2020
|
| Coupon: | Libor plus 55 bps
|
| Price: | Par
|
| Yield: | Libor plus 55 bps
|
| Price guidance: | Libor equivalent
|
|
|
| Seven-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 20, 2022
|
| Coupon: | 3%
|
| Price: | 99.962
|
| Yield: | 3.006%
|
| Spread: | 100 bps
|
| Price guidance: | 105 bps area, tightened from 110 bps to 115 bps
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 20, 2025
|
| Coupon: | 3.45%
|
| Price: | 99.64
|
| Yield: | 3.493%
|
| Spread: | 120 bps
|
| Price guidance: | 125 bps area, tightened from 130 bps to 135 bps
|
|
|
| 20-year bonds
|
| Amount: | $1 billion
|
| Maturity: | May 20, 2035
|
| Coupon: | 4.65%
|
| Price: | 99.562
|
| Yield: | 4.684%
|
| Spread: | 160 bps
|
| Price guidance: | 165 bps area, adjusted from 160 bps to 165 bps
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | May 20, 2045
|
| Coupon: | 4.8%
|
| Price: | 99.464
|
| Yield: | 4.834%
|
| Spread: | 175 bps
|
| Price guidance: | 180 bps area, tightened from 180 bps to 185 bps
|
|
|
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