Intel plans to redeem all $1.6 billion of 2.95% convertibles due 2035

By Tali Rackner

Minneapolis, Nov. 16 – Intel Corp. intends to redeem all $1.6 billion of its 2.95% junior subordinated convertible debentures due 2035, according to a press release.

The debentures will be redeemed at par plus accrued interest on Dec. 18.

The securities may be converted at any time before 5 p.m. ET, on Dec. 15.

The conversion rate as of Nov. 16 is 37.1860 shares of Intel common stock per $1,000 principal amount, which is equivalent to a conversion price of $26.89 per share of common stock.

The company said it elected to settle the conversion obligation with respect to the securities in cash. The amount of cash payable upon conversion will, for each share of common stock, be equal to the average of the last reported price of the common stock for the five consecutive trading days immediately following the date the security has been submitted for conversion

Any holder that surrenders securities for conversion between the close of business on Dec. 1 and the opening of business on Dec. 15 will be required to pay Intel an amount equal to the interest payable by Intel with respect to the securities on the interest payment date of Dec. 15 at the time such holder surrenders their securities for conversion.

The semiconductor chip maker is based in Santa Clara, Calif.

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