Moody's rates Broadcom notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Broadcom Inc.'s new senior unsecured notes due 2029 and senior unsecured notes due 2032. The agency affirmed Broadcom’s Baa3 rating on June 9.

Broadcom intends to use the proceeds to redeem its $1.02 billion principal amount of 4.7% senior notes due 2025 and $944 million principal amount of 4.25% senior notes due 2026.

Additionally, Broadcom will issue up to $2.5 billion of senior unsecured notes due 2037 in an exchange offer for a similar principal amount of certain tranches of senior notes issued by Broadcom and the unrated 4.7% senior notes due 2027 of CA, Inc. Broadcom will use its cash balances to fund the premium payments associated with the refinancing transactions.

“The new notes issuance, redemptions of existing notes, and the exchange offer is credit positive for Broadcom on a consolidated basis since it will extend the average maturity of its debt capital structure without adding incremental debt,” the agency said in a press release.

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