Intel starts exchange offer, cash tender for three series of notes

New York, Nov. 29 – Intel Corp. announced exchange offers and cash tender offers for three series of its outstanding notes.

The securities covered by the offers are Intel’s $1.5 billion of 4.8% senior notes due 2041, $925 million of 4.25% senior notes due 2042 and $2 billion of 4.9% senior notes due 2045.

Only qualified institutional buyers and non-U.S. persons may participate in the exchange offers, but the cash tender is open to all.

In the exchange, Intel is offering new notes due Dec. 8, 2047 with a coupon equal to the yield on the 2.75% Treasury due Aug. 15, 2047 plus 97 basis points.

The total exchange price for the 4.8% notes will be set using the 2.75% Treasury due Aug. 15, 2047 plus a spread of 70 bps and will include $180.00 of cash per $1,000 principal amount with the remainder to be made up of new notes. Based on Treasury rates at 11 a.m. ET on Nov. 28, the hypothetical total exchange price is $1,214.48 and the hypothetical amount of new notes is $1,034.48.

For the 4.25% notes, pricing will be set using a spread of 70 bps over the 2.75% Treasury due Aug. 15, 2047 and will include $129.00 of cash; the remainder to be paid in new notes. The hypothetical total price is $1,129.91, and the hypothetical amount of new notes is $1,000.91.

Pricing for the 4.9% notes will be set using a spread of 75 bps over the 2.75% Treasury due Aug. 15, 2047 and will include $152.00 of cash with the remainder in new notes. The hypothetical total price is $1,240.14, and the hypothetical amount of new notes is $1,088.14.

The pricing levels for the offer will be set at 11 a.m. ET on Dec. 5.

Intel said that it may vary the amount of new notes to be issued by up to $50 per $1,000 in either direction and make a corresponding adjustment to the cash amount in order to hold the total exchange price constant.

The company will also pay accrued interest up to but excluding the settlement date.

The exchange ends at 5 p.m. ET on Dec. 5. Guaranteed deliveries may be made until 5 p.m. ET two business days later. Settlement is planned for Dec. 8.

If the response to the exchange is not sufficient to result in at least $500 million of new notes being issued then Intel will either pay the full exchange price in cash or return the existing notes, at the option of holders.

Intel will withdraw the exchange offer for a specific series of the existing notes if it terminates the cash tender for that series of notes.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or http://gbsc-usa.com/eligibility/intel) is information agent and exchange agent.

The cash tender is made up of three separate offers for the same notes that are the subject of the exchange offers. Intel said that holders who are eligible for the exchange offer may participate in the cash tender as well but that specific notes may only be tendered into one or the other but not both.

The company is offering to buy the 4.8% notes at a price to be set using a spread of 70 bps over the 2.75% Treasury due Aug. 15, 2047 for a hypothetical price of $1,214.48 per $1,000 principal amount based on Treasury levels at 11 a.m. ET on Nov. 28.

For the 4.25% notes, pricing will also be based on a spread of 70 bps over the 2.75% Treasury due Aug. 15, 2047 for a hypothetical price of $1,129.91 per $1,000 principal amount and for the 4.9% notes the pricing will be set via a 75 bps spread over the 2.75% Treasury due Aug. 15, 2047 for a hypothetical price of $1,240.14 per $1,000 principal amount.

Pricing will be set at 11 a.m. ET on Dec. 5.

Holders will also receive accrued interest up to but excluding the settlement date.

The cash tenders end at 5 p.m. ET on Dec. 5. Guaranteed deliveries may be made until 5 p.m. ET two business days later. Settlement is planned for Dec. 8.

Global Bondholder Services Corp. (866 470-3800, 212 430-3774 or http://gbsc-usa.com/Intel) is information agent and exchange agent.

Intel is a Santa Clara, Calif., maker of semiconductors.

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