Avago Technologies issues price talk on $1 billion three-part deal; to price Monday

By Paul A. Harris

St. Louis, Nov. 17 - Avago Technologies Finance Pte. Ltd. issued price talk on its three-part offering of high-yield bonds, according to a market source.

The offering comprises $750 million of senior notes (B3/B) in two tranches, with tranche sizes to be determined. The tranche of eight-year fixed-rate notes, which come with four years of call protection, is talked at 9¾% to 10%. Meanwhile the tranche of 7.5-year floating-rate notes is talked at Libor plus 525 to 550 basis points.

Avago is also offering $250 million of 10-year senior subordinated notes (Caa2/CCC+), which it is talking at the 11½% area.

Pricing is expected on Monday.

Lehman Brothers, Citigroup and Credit Suisse First Boston are joint bookrunners.

The Singapore-based company will use the proceeds to help fund the buyout of Agilent Technologies Inc.'s semiconductor unit by Kohlberg Kravis Roberts & Co. and Silver Lake Partners.

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