Published on 2/15/2024 in the Prospect News Investment Grade Daily.
New Issue: Intel sells $2.55 billion of notes due 2031, 2034, 2054
By Wendy Van Sickle
Columbus, Ohio, Feb. 15 – Intel Corp. sold $2.55 billion of notes in three fixed-rate tranches (A3/A-/A-) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The breakdown of the deal is as follows:
• $500 million of 5% seven-year notes that priced at 99.633 to yield 5.063%, or with a 82 basis points spread over Treasuries;
• $900 million 5.15% 10-year notes that priced at 99.706 to yield 5.188%, or with a 95 bps over Treasuries spread; and
• $1.15 billion 5.6% 30-year notes that priced at 99.697 to yield 5.621%, or 120 bps over Treasuries.
Each tranche has a make-whole call and then a par call.
Bookrunners are BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC.
Proceeds will be used for general corporate purposes, including, but not limited to, refinancing of outstanding debt, funding for working capital and capital expenditures.
Intel is a semiconductor chip maker based in Santa Clara, Calif.
| Issuer: | Intel Corp.
|
| Amount: | $2.55 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Barclays, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Co-managers: | Academy Securities, Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., ICBC Standard Bank plc, NatWest Markets Securities Inc., Standard Chartered Bank, Independence Point Securities LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | Feb. 15
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 2031 notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 21, 2031
|
| Coupon: | 5%
|
| Price: | 99.633
|
| Yield: | 5.063%
|
| Spread: | Treasuries plus 82 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to Dec. 21, 2030, then at par
|
| Cusip: | 458140CN8
|
|
|
| 2034 notes
|
| Amount: | $900 million
|
| Maturity: | Feb. 21, 2034
|
| Coupon: | 5.15%
|
| Price: | 99.706
|
| Yield: | 5.188%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to Nov. 21, 2033, then at par
|
| Cusip: | 458140CL2
|
|
|
| 2054 notes
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| Amount: | $1.15 billion
|
| Maturity: | Feb. 21, 2054
|
| Coupon: | 5.6%
|
| Price: | 99.697
|
| Yield: | 5.621%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to Aug. 21, 2053, then at par
|
| Cusip: | 458140CM0
|
|
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