By Andrea Heisinger
New York, Dec. 4 - Intel Corp. priced $6 billion of senior notes (A1/A+/A+) in a reallocated four tranches during Tuesday's session, a source away from the trade said.
The size of the sale was increased to include a fourth tranche of 20-year notes.
A $3 billion tranche of 1.35% five-year notes priced at 99.894 to yield 1.372% with a spread of 75 basis points over Treasuries. The notes priced tighter than guidance that was in the 80 bps area.
There was a make-whole call at Treasuries plus 12.5 bps.
There was $1.5 billion of 2.7% 10-year notes sold at 99.573 to yield 2.749% with a spread of 115 bps over Treasuries, which was in line with talk.
The tranche has a make-whole call at 20 bps over Treasuries.
A $750 million tranche of 4% 20-year notes priced at 99.115 to yield 4.065% with a spread of Treasuries plus 130 bps. The maturity came tighter than talk in the 135 bps area.
The notes feature a make-whole call at Treasuries plus 20 bps.
Finally, there was $750 million of 4.25% 30-year bonds sold at 99.747 to yield 4.265% with a spread of Treasuries plus 150 bps. Pricing was in line with guidance.
The bonds have a make-whole call at Treasuries plus 25 bps.
Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes and the repurchase of common stock under an existing program.
Intel last priced bonds in the U.S. market with a $5 billion offering of bonds in three parts on Sept. 14, 2011. That deal included a 1.95% five-year note priced at 110 bps over Treasuries, a 3.3% 10-year note sold at 135 bps over Treasuries and a 4.8% 30-year bond priced at 160 bps over Treasuries.
The semiconductor chip maker is based in Santa Clara, Calif.
| Issuer: | Intel Corp.
|
| Issue: | Senior notes
|
| Amount: | $6 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Needham & Co. LLC, Wells Fargo Securities LLC
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 11
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $3 billion
|
| Maturity: | Dec. 15, 2017
|
| Coupon: | 1.35%
|
| Price: | 99.894
|
| Yield: | 1.372%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 80 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Dec. 15, 2022
|
| Coupon: | 2.7%
|
| Price: | 99.573
|
| Yield: | 2.749%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 115 bps area
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2032
|
| Coupon: | 4%
|
| Price: | 99.115
|
| Yield: | 4.065%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 135 bps area
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2042
|
| Coupon: | 4.25%
|
| Price: | 99.747
|
| Yield: | 4.265%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 150 bps area
|
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