By Cristal Cody
Tupelo, Miss., May 22 – Qualcomm Inc. offered additional details of its previously reported $11 billion nine-part issue of notes (A1/A) sold on Friday in an FWP filing with the Securities and Exchange Commission on Monday.
The company priced $750 million of two-year floating-rate notes at par to yield Libor plus 36 basis points.
Qualcomm sold $1.25 billion of 1.85% two-year fixed-rate notes at a spread of Treasuries plus 60 bps. The notes priced at 99.954 to yield 1.874%.
The $500 million tranche of three-year floating-rate notes priced at par to yield Libor plus 45 bps.
The $1.5 billion issue of 2.1% three-year fixed-rate notes were sold with a Treasuries plus 65 bps spread. The notes priced at 99.994 to yield 2.102%.
Qualcomm placed $500 million of floating-rate notes due Jan. 30, 2023 at par to yield Libor plus 73 bps.
The company sold $1.5 billion of 2.6% fixed-rate notes due Jan. 30, 2023 at a spread of 85 bps over Treasuries. The notes priced at 99.839 to yield 2.63%.
The $1.5 billion seven-year tranche of 2.9% notes priced at 99.712 to yield 2.946% and a spread of 90 bps over Treasuries.
Qualcomm sold $2 billion of 3.25% 10-year notes at 99.738 to yield 3.281%, or a Treasuries plus 105 bps spread.
In the final tranche, the company priced $1.5 billion of 4.3% 30-year notes with a Treasuries plus 140 bps spread. The notes priced at 99.984 to yield 4.301%.
Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. were the bookrunners.
Some of the notes have a special mandatory redemption at 101 if the company’s planned acquisition of NXP Semiconductors NV does not take place.
Proceeds will be used to pay part of the purchase price and the transaction fees and expenses of the acquisition of NXP and to repurchase for cash NXP’s convertible senior notes at the option of the holders. Estimated funds needed for the acquisition from all sources total $39.5 billion.
The San Diego-based company designs, develops, manufactures and markets wireless telecommunications products and services.
| Issuer: | Qualcomm Inc.
|
| Amount: | $11 billion
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| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
|
| Co-managers: | Mizuho Securities USA LLC, MUFG, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Lloyds Securities Inc., Loop Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc. and Lebenthal & Co., LLC
|
| Trade date: | May 19
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| Settlement date: | May 26
|
| Ratings: | Moody’s: A1
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| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Maturity: | May 20, 2019
|
| Coupon: | Libor plus 36 bps
|
| Price: | Par
|
| Yield: | Libor plus 36 bps
|
| Call feature: | 101 if principal plus accrued and unpaid interest if purchase agreement not consummated
|
|
|
| Two-year notes
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| Amount: | $1.25 billion
|
| Maturity: | May 20, 2019
|
| Coupon: | 1.85%
|
| Price: | 99.954
|
| Yield: | 1.874%
|
| Spread: | Treasuries plus 60 bps
|
| Call feature: | 101 if principal plus accrued and unpaid interest if purchase agreement not consummated; make-whole call at Treasuries plus 10 bps
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 20, 2019
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
| Call feature: | 101 if principal plus accrued and unpaid interest if purchase agreement not consummated
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 20, 2019
|
| Coupon: | 2.1%
|
| Price: | 99.994
|
| Yield: | 2.102%
|
| Spread: | Treasuries plus 65 bps
|
| Call feature: | 101 if principal plus accrued and unpaid interest if purchase agreement not consummated; make-whole call at Treasuries plus 10 bps
|
|
|
| Six-year floaters
|
| Amount: | $500 million
|
| Maturity: | Jan. 30, 2023
|
| Coupon: | Libor plus 73 bps
|
| Price: | Par
|
| Yield: | Libor plus 73 bps
|
| Call feature: | None
|
|
|
| Six-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Jan. 30, 2023
|
| Coupon: | 2.6%
|
| Price: | 99.839
|
| Yield: | 2.63%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call before Dec. 30, 2022 at Treasuries plus 15 bps; thereafter at par
|
|
|
| Seven-year notes
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| Amount: | $1.5 billion
|
| Maturity: | May 20, 2024
|
| Coupon: | 2.9%
|
| Price: | 99.712
|
| Yield: | 2.946%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call before March 20, 2024 at Treasuries plus 15 bps; thereafter at par
|
|
|
| Ten-year notes
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| Amount: | $2 billion
|
| Maturity: | May 20, 2027
|
| Coupon: | 3.25%
|
| Price: | 99.738
|
| Yield: | 3.281%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Feb. 20, 2027 at Treasuries plus 20 bps; thereafter at par
|
|
|
| Thirty-year notes
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| Amount: | $1.5 billion
|
| Maturity: | May 20, 2047
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| Coupon: | 4.3%
|
| Price: | 99.984
|
| Yield: | 4.301%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before Nov. 20, 2046 at Treasuries plus 25 bps; thereafter at par
|
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