Intel to redeem 3.25% junior subordinated convertibles on Jan. 9

By Sarah Lizee

Olympia, Wash., Nov. 25 – Intel Corp. plans to redeem all $372 million of its outstanding 3.25% junior subordinated convertible debentures due 2039 on Jan. 9, according to a press release.

The convertibles will be redeemed at par plus accrued interest to but excluding the redemption date.

The conversion rate of the securities as of Nov. 22 is 49.6852 shares of Intel common stock per $1,000 principal amount of the convertibles, which is equivalent to a conversion price of $20.13 per share of common stock.

The convertibles called for redemption may be converted at any time before 5 p.m. ET on Jan. 6, the third scheduled trading day immediately preceding the redemption date.

Intel will settle the conversion obligation in cash.

The amount of cash payable upon conversion will, for each share of common stock into which the security is convertible, be equal to the sum of the daily settlement amounts for each of the 20 trading days during the observation period. The observation period means the 20 consecutive trading days beginning on and including the 22nd scheduled trading day prior to the redemption date.

Upon conversion, a holder will not receive any separate cash payment for accrued interest and the company’s settlement of the conversion obligation will be deemed to satisfy its obligation to pay the principal amount of the security and accrued interest to but not including the conversion date.

Wells Fargo Bank, NA (800 344-5128) is the trustee, paying agent and conversion agent.

Intel is a semiconductor chip maker based in Santa Clara, Calif.

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