By Aleesia Forni
Virginia Beach, July 22 – Intel Corp. sold $7 billion of senior notes (A1/A+/A+) in four tranches during Wednesday’s session, according to a market source.
A $1.75 billion 2.45% note due 2020 sold at 99.906 to yield 2.47%, or Treasuries plus 80 basis points.
Price guidance was set in the Treasuries plus 85 bps area after having tightened from the Treasuries plus 100 bps area.
Also, $1 billion of 3.1% notes due 2022 sold at 99.956 to yield 3.107% with a spread of 105 bps over Treasuries.
Pricing was at the tight end of the Treasuries plus 110 bps area guidance. The tranche was initially talked in the Treasuries plus 130 bps area.
The company sold $2.25 billion of 3.7% notes due 2025 with a spread of Treasuries plus 140 bps, at the tight end of guidance set in the 145 bps area over Treasuries. Initial talk was in the 155 bps area over Treasuries.
The notes sold at 99.851 to yield 3.718%.
Finally, $2 billion of 4.9% bonds due 2045 sold at 99.922 to yield 4.905%, or Treasuries plus 185 bps.
The notes priced at the tight end of the Treasuries plus 190 bps area guidance, which firmed from talk in the Treasuries plus 205 bps area.
BofA Merrill Lynch and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to fund in part the company’s acquisition of Altera Corp.
Intel is a semiconductor chip maker based in Santa Clara, Calif.
| Issuer: | Intel Corp.
|
| Issue: | Senior notes
|
| Amount: | $7 billion
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Trade date: | July 22
|
| Settlement date: | July 29
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | July 29, 2020
|
| Coupon: | 2.45%
|
| Price: | 99.906
|
| Yield: | 2.47%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 85 bps area, tightened from Treasuries plus 100 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 29, 2022
|
| Coupon: | 3.1%
|
| Price: | 99.956
|
| Yield: | 3.107%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 130 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | July 29, 2025
|
| Coupon: | 3.7%
|
| Price: | 99.851
|
| Yield: | 3.718%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, tightened from Treasuries plus 155 bps area
|
|
|
| 30-year bonds
|
| Amount: | $2 billion
|
| Maturity: | July 29, 2045
|
| Coupon: | 4.9%
|
| Price: | 99.922
|
| Yield: | 4.905%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 190 bps area, tightened from Treasuries plus 205 bps area
|
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