By Devika Patel
Knoxville, Tenn., Feb. 11 – Intel Corp. offered further details about a $2.25 billion three-part offering of new and reopened senior notes (A1/A+/A+) that priced on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company priced a $750 million add-on to its 2.45% notes due Nov. 15, 2029 at a Treasuries plus 65 basis points spread. These notes priced at 102.125 to yield 2.201%.
Initial price talk was in the 85 bps spread area.
Intel originally sold $1.25 billion of the notes on Nov. 18, 2019 at 99.868 to yield 2.465% and a spread of 65 bps over Treasuries. The total outstanding is now $2 billion.
The company also priced a $500 million add-on to its 3.25% notes due Nov. 15, 2049 at a Treasuries plus 90 bps spread. These notes priced at 106.276 to yield 2.929%.
The notes were talked to price in the Treasuries plus 110 bps area.
Intel first sold the bonds in a $1.5 billion tranche in the Nov. 18 offering at 99.943 to yield 3.253% and a Treasuries plus 95 bps spread. The total outstanding is now $2 billion.
In the new issue, Intel sold $1 billion of 3.1% notes due Feb. 15, 2060 at a Treasuries plus 110 bps spread. These notes priced at 99.341 to yield 3.129%.
Initial price talk was in the Treasuries plus 130 bps area.
Goldman Sachs & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including debt refinancing.
Intel is a semiconductor chip maker based in Santa Clara, Calif.
| Issuer: | Intel Corp.
|
| Amount: | $2.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | Academy Securities, Inc., Drexel Hamilton, LLC, Guzman & Co. and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 13
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Add-on notes due 2029
|
| Amount: | $750 million reopening
|
| Maturity: | Nov. 15, 2029
|
| Coupon: | 2.45%
|
| Price: | 102.125
|
| Yield: | 2.201%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before Aug. 15, 2029; thereafter at par
|
| Price guidance: | Treasuries plus 85 bps area
|
| Total outstanding: | $2 billion, including $1.25 billion of notes priced Nov. 18, 2019 at 99.868 to yield 2.465% and a spread of 65 bps over Treasuries
|
|
|
| Add-on notes due 2049
|
| Amount: | $500 million reopening
|
| Maturity: | Nov. 15, 2049
|
| Coupon: | 3.25%
|
| Price: | 106.276
|
| Yield: | 2.929%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before May 15, 2049; thereafter at par
|
| Price guidance: | Treasuries plus 110 bps area
|
| Total outstanding: | $2 billion, including $1.5 billion of notes priced Nov. 18, 2019 at 99.943 to yield 3.253% and a spread of 95 bps over Treasuries
|
|
|
| 40-year notes
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| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2060
|
| Coupon: | 3.1%
|
| Price: | 99.341
|
| Yield: | 3.129%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 130 bps area
|
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