Broadcom reports $2.9 billion early tenders in offers for seven series

By Wendy Van Sickle

Columbus, Ohio, Jan. 19 – Broadcom Inc. said it received and accepted tenders of about $2.9 billion of notes by the early deadline of its cash tender offers and simultaneous consent solicitations for seven series of its notes due 2021 to 2023, according to a press release.

The offer was announced on Jan. 4 at a size of up to $2.75 billion initially, then increased to $3.5 billion later in the day as Broadcom announced the pricing of $10 billion of new senior notes.

The early deadline was 5 p.m. ET on Jan. 15.

The early tenders received, listed in the order of acceptance priority, are:

• $251,119,000 of the $525,342,000 outstanding of 3.125% senior notes due 2021 (Cusips: 11135FAA9, U1109MAA4 and 11135FAW1) issued by Broadcom Inc. for $976.80 per $1,000 face amount of notes;

• $272,704,000 of the $841,913,000 outstanding of 3% senior notes due 2022 (Cusips: 11134LAC3, U1108LAB5 and 11134LAD1) issued by Broadcom Corp. for $994.20 per $1,000 of notes;

• $139,641,000 of the $283,351,000 outstanding of 3.6% senior notes due 2022 (Cusip: 12673PAH8) issued by CA, Inc. for $1,017.80 per $1,000 of notes;

• $504,461,000 of the $692,841,000 outstanding of 3.125% senior notes due 2022 (Cusips: 11135FAC5, U1109MAC0 and 11135FAX9) issued by Broadcom Inc. for $1,018.30 per $1,000 of notes;

• $738,777,000 of the $1 billion outstanding of 2.65% senior notes due 2023 (Cusip: 11134LAM1) issued by Broadcom Corp. for $1,015 per $1,000 of notes;

• $106,893,000 of the $250 million outstanding of 4.5% senior notes due 2023 (Cusip: 12673PAE5) issued by CA, Inc. for $1,073.30 per $1,000 of notes; and

• $887,663,000 of the $1 billion outstanding of 2.25% senior notes due 2023 (Cusips: 11135AU5, U1109MAN6 and 11135FAV3) issued by Broadcom Inc. for $1,020.20 per $1,000 of notes.

Holders who tendered their notes by the early deadline will also receive an early tender premium of $30 per $1,000 face amount of notes.

Early settlement is set for Jan. 20.

Broadcom plans to fund the tender offer with an issue of new notes.

Broadcom is also running related consent solicitations to amend the indentures of the notes to require only three days’ notice before optional redemption, rather than the current 15 or 30 days for each note series.

The offers expire at 11:59 p.m. ET on Feb. 1.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and Wells Fargo Securities, LLC (704 410-4756, 866 309-6316; liabilitymanagement@wellsfargo.com) are acting the dealer managers for the tenders and consents. D.F. King & Co., Inc. (212 269-5550, 866 416-0577) is the information and tender agent.

Broadcom is a San Jose, Calif.-based designer and developer of semiconductor and infrastructure software solutions.

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