Broadcom gives early results on exchange offers for two pools of notes

By Taylor Fox

New York, March 29 – Broadcom Inc. announced the early results for its offers to exchange one pool of notes for up to $2 billion of new notes due 2033 and a cash payment and to exchange a second pool of notes for up to $3 billion of new notes due 2034 and a cash payment, according to a news release.

The early participation deadline was 5 p.m. ET March 26.

Pool one offers

As of the early participation deadline, the following notes, listed by acceptance priority level, were tendered for new notes due April 15, 2033 to be priced based on the 1.125% U.S. Treasury due Feb. 15, 2031 plus 173 basis points:

• $414,931,000 of the $1 billion outstanding 3.125% senior notes due Jan. 15, 2025 (Cusip: 11134LAP4) issued by Broadcom Corp. with pricing based on the 2.25% U.S. Treasury due Nov. 15, 2024 plus 40 bps;

• $1,002,653,000 of the $2.25 billion outstanding 4.7% senior notes due April 15, 2025 (Cusip: 11135FBC4) issued by Broadcom Inc. with pricing based on the 1.125% U.S. Treasury due Feb. 28, 2025 plus 50 bps; and

• $1,085,219,000 of the $2.25 billion outstanding 3.15% senior notes due Nov. 15, 2025 (Cusip: 11135FAT8) issued by Broadcom Inc. with pricing based on the 0.25% U.S. Treasury due Sept. 30, 2025 plus 50 bps.

Pool two offers

As of the early participation deadline, the following notes, listed by acceptance priority level, were tendered for new notes due April 15, 2034 to be priced based on the 1.125% U.S. Treasury due Feb. 15, 2031 plus 178 bps:

• $523,527,000 of the $1,352,128,000 outstanding 3.625% senior notes due Jan. 15, 2024 (Cusip: 111134LAE9) issued by Broadcom Corp. with pricing based on the 0.25% U.S. Treasury due Nov. 15 ,2023 plus 25 bps;

• $422,263,000 of the $1,044,409,000 outstanding 3.625% senior notes due Oct. 15, 2024 (Cusip: 111135AD3) issued by Broadcom Inc. with pricing based on the 1.25% U.S. Treasury due Aug. 31, 2024 plus 25 bps;

• $1,317,164,000 of the $2.5 billion outstanding 4.25% senior notes due April 15, 2026 (Cusip: 111135FAE1) issued by Broadcom Inc. with pricing based on the 0.5% U.S. Treasury due Feb. 28, 2026 plus 85 bps;

• $1,873,030,000 of the $4.8 billion outstanding 3.875% senior notes due Jan. 15, 2027 (Cusip: 11134LAG4) issued by Broadcom Corp. with pricing based on the 0.5% U.S. Treasury due Feb. 28, 2026 plus 115 bps;

• $109,829,000 of the $350 million outstanding 4.7% senior notes due March 15, 2027 (Cusip: 12673PAJ4) issued by CA, Inc. with pricing based on the 0.5% U.S. Treasury due Feb. 28, 2026 plus 125 bps; and

• $653,358,000 of the $1,695,320,000 outstanding 3.459% senior notes due Sept. 15, 2026 (Cusip: 11135FAM3) issued by Broadcom Inc. with pricing based on the 0.5% U.S. Treasury due Feb. 28, 2026 plus 100 bps.

Details

As previously reported, pricing will be determined at 11 a.m. ET on March 29.

Holders who tender and do not withdraw existing notes prior to the early participation date will receive the total consideration, including a $50 early participant payment per $1,000 of notes tendered.

Holders who tender after the early participation date will receive the exchange consideration, which is the total consideration less the early participant payment.

The total consideration and exchange consideration each include a cash component equal to the applicable consideration for the relevant note series minus $1,000. For each series, the cash component is the same for early tendered notes and notes tendered after the early deadline.

Broadcom will also pay interest on the notes.

The offers are subject to a number of conditions, including, among other things, the issuance of at least $500 million of each series of new notes.

The early settlement date will occur on March 31.

The offers will expire at 12 a.m. ET on April 9.

Final settlement is expected to be April 13.

D.F. King & Co., Inc. (866 416-0577, 212 269-5550) is the information agent, and BofA Securities, Inc. and HSBC Securities (USA) Inc. are the dealer managers.

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

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