By Cristal Cody
Tupelo, Miss., Jan. 5 – Details emerged on Broadcom Inc.’s $10 billion of senior notes (Baa3/BBB-/BBB-) that priced Monday in five tranches, according to a market source.
The company priced $750 million of 1.95% notes due Feb. 15, 2028 at Treasuries plus 135 basis points.
It sold $2.75 billion of 2.45% notes due Feb. 15, 2031 at Treasuries plus 155 bps.
Broadcom sold $1.75 billion of 2.6% notes due Feb. 15, 2033 at Treasuries plus 170 bps.
The company priced $3 billion of 3.5% notes due Feb. 15, 2031 at Treasuries plus 185 bps.
Finally, Broadcom priced $1.75 billion of 3.75% notes due Feb. 15, 2051 at Treasuries plus 210 bps.
The deal came at the high end of the planned $8 billion to $10 billion size.
The 2028 notes were talked at the 160 basis points area over Treasuries, the 2031 notes at the 180 bps area over Treasuries, the 2033 notes at the 195 bps area, the 2041 notes at the 210 bps area and the 2051 notes at the 235 bps area, according to a market source.
BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., SMBC Nikko Securities America Inc. and Truist Securities Inc. are the bookrunners.
Proceeds will be used to repay existing debt including funding a tender offer. Broadcom increased the size of the tender to $3.5 billion from $2.75 billion with the pricing of the new notes.
Further details were not immediately available.
Broadcom is a San Jose, Calif.-based designer and developer of semiconductor and infrastructure software solutions.
| Issuer: | Broadcom Inc.
|
| Issue: | Senior notes
|
| Amount: | $10 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, RBC Capital Markets Corp., SMBC Nikko Securities America Inc. and Truist Securities Inc.
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Pricing date: | Jan. 4
|
| Settlement: | Jan. 19
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Seven-year notes
|
| Maturity: | 2028
|
| Amount: | $750 million
|
| Coupon: | 1.95%
|
| Spread: | 135 bps over Treasuries
|
| Talk: | 160 bps over Treasuries
|
|
|
| Ten-year notes
|
| Maturity: | 2031
|
| Amount: | $2.75 billion
|
| Coupon: | 2.45%
|
| Spread: | 155 bps over Treasuries
|
| Talk: | 180 bps over Treasuries
|
|
|
| Twelve-year notes
|
| Maturity: | 2033
|
| Amount: | $1.75 billion
|
| Coupon: | 2.6%
|
| Spread: | 170 bps over Treasuries
|
| Talk: | 195 bps over Treasuries
|
|
|
| Twenty-year notes
|
| Maturity: | 2041
|
| Amount: | $3 billion
|
| Coupon: | 3.5%
|
| Spread: | 185 bps over Treasuries
|
| Talk: | 210 bps over Treasuries
|
|
|
| Thirty-year notes
|
| Maturity: | 2051
|
| Amount: | $1.75 billion
|
| Coupon: | 3.75%
|
| Spread: | 210 bps over Treasuries
|
| Talk: | 235 bps over Treasuries
|
|
|
|
|
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