Broadcom priced cash tender offers for six series of outstanding notes, setting a total purchase cap of $2.5 billion excluding accrued interest.
The company said the highest-priority issue is its 4.926% senior notes due 2037, with $2.5 billion outstanding and a total consideration of $982.01 per $1,000 principal amount. The 4.900% senior notes due 2038, with $1.75 billion outstanding, were priced at $970.29 per $1,000.
Among the shorter-dated bonds, Broadcom set total consideration at $1,021.24 for its 5.050% senior notes due 2030, which have $800 million outstanding. The 5.200% senior notes due 2032, with $1.1 billion outstanding, were priced at $1,023.23. The 5.150% senior notes due 2031, with $1.5 billion outstanding, were priced at $1,021.77, while the 4.900% senior notes due 2032, with $1.75 billion outstanding, were priced at $1,003.73.
Broadcom assigned acceptance priority levels from 1 through 6, with the 2037 notes first and the 2032 4.900% notes last. The company said the offers are scheduled to expire at 5:00 p.m. New York time on June 17, with guaranteed delivery accepted through June 22. Initial settlement is expected June 18, and guaranteed-delivery settlement June 23. The market has reacted to these announcements by moving the company's shares 4.2% to a price of $409.40. For the full picture, make sure to review Broadcom's 8-K report.
