By Aleesia Forni
Virginia Beach, Feb. 25 - Cisco Systems, Inc. detailed its $8 billion sale of senior notes (/AA-/), according to seven separate FWP filings with the Securities and Exchange Commission.
The company priced $850 million of 18-month floating-rate notes at par to yield Libor plus 5 basis points.
A $1 billion tranche of three-year floaters priced at par to yield Libor plus 28 bps.
There was also $2.4 billion of 1.1% three-year notes sold at 40 bps over Treasuries, or 99.994 to yield 1.102%.
A fourth tranche was $500 million of five-year notes priced at par to yield Libor plus 50 bps.
Cisco sold $1.75 billion of 2.125% notes due 2019 at 60 bps over Treasuries.
The notes priced at 99.929 to yield 2.14%.
There was a $500 million tranche of 2.9% seven-year notes priced with a spread of 75 bps over Treasuries, or 99.818 to yield 2.929%.
Finally, $1 billion of 3.625% 10-year notes priced at Treasuries plus 90 bps.
Pricing was at 99.925 to yield 3.634%.
All fixed-rate tranches priced at the tight end of talk.
The joint bookrunners were BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including the repayment of the company's 1.625% notes and floating-rate notes due March 14, 2014 and 2.9% notes maturing on Nov. 17, 2014.
The company also plans to use proceeds to return capital to shareholders through the repurchase of shares of common stock and cash dividends.
Based in San Jose, Calif., Cisco produces internet protocol-based networking and other communications and information technology products.
| Issuer: | Cisco Systems, Inc.
|
| Issue: | Senior notes
|
| Amount: | $8 billion
|
| Joint bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC.
|
| Co-managers: | BB&T Capital Markets, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., Morgan Stanley & Co. LLC, RBS Securities Inc.
|
| Trade date: | Feb. 24
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: AA-
|
|
|
| Floaters due 2015
|
| Amount: | $850 million
|
| Maturity: | Sept. 3, 2015
|
| Coupon: | Libor plus 5 bps
|
| Price: | Par
|
| Yield: | Libor plus 5 bps
|
| Price talk: | Libor plus 5 to 7 bps
|
|
|
| Floaters due 2017
|
| Amount: | $1 billion
|
| Maturity: | March 3, 2017
|
| Coupon: | Libor plus 28 bps
|
| Price: | Par
|
| Yield: | Libor plus 28 bps
|
|
|
| Notes due 2017
|
| Amount: | $2.4 billion
|
| Maturity: | March 3, 2017
|
| Coupon: | 1.1%
|
| Price: | 99.994
|
| Yield: | 1.102%
|
| Spread: | Treasuries plus 40 bps
|
| Price talk: | Treasuries plus 45 bps area
|
|
|
| Floaters due 2019
|
| Amount: | $500 million
|
| Maturity: | March 1, 2019
|
| Coupon: | Libor plus 50 bps
|
| Price: | Par
|
| Yield: | Libor plus 50 bps
|
|
|
| Notes due 2019
|
| Amount: | $1.75 billion
|
| Maturity: | March 1, 2019
|
| Coupon: | 2.125%
|
| Price: | 99.929
|
| Yield: | 2.14%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 65 bps area, tightened from Treasuries plus 70 bps area
|
|
|
| Notes due 2021
|
| Amount: | $500 million
|
| Maturity: | March 4, 2021
|
| Coupon: | 2.9%
|
| Price: | 99.818
|
| Yield: | 2.929%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 80 bps area, tightened from Treasuries plus 95 bps area
|
|
|
| Notes due 2024
|
| Amount: | $1 billion
|
| Maturity: | March 4, 2024
|
| Coupon: | 3.625%
|
| Price: | 99.925
|
| Yield: | 3.634%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 95 bps area, tightened from Treasuries plus 105 bps area
|
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