By Aleesia Forni
New York, Feb. 23 – Cisco Systems, Inc. detailed its $7 billion offering of senior notes (A1/AA-) that priced in six tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The sale included a $1.25 billion 1.4% tranche of two-year notes sold at par, or Treasuries plus 65 basis points.
A $1 billion tranche of two-year floaters sold at par to yield Libor plus 60 bps.
And $1 billion of 1.6% three-year notes priced with a spread of Treasuries plus 70 bps. The notes sold at 99.971 to yield 1.61%.
The company also sold $2.5 billion of 2.2% five-year notes at 99.808 to yield 2.241%, or 100 bps over Treasuries.
There was also $500 million of 2.6% seven-year notes sold at Treasuries plus 110 bps. Pricing was at 99.836 to yield 2.626%.
A $750 million tranche of 2.95% 10-year notes priced at 120 bps over Treasuries. Pricing was at 99.924 to yield 2.959%.
All tranches of the sale sold at the tight side of guidance.
The joint bookrunners are BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and HSBC Securities.
Proceeds will be used for general corporate purposes.
Based in San Jose, Calif., Cisco produces internet protocol-based networking and other communications and information technology products.
| Issuer: | Cisco Systems Inc.
|
| Issue: | Senior notes
|
| Amount: | $7 billion
|
| Bookrunners: | BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., HSBC Securities
|
| Senior co-managers: | BB&T Capital Markets, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Lloyds Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC
|
| Co-manager: | Mischler Financial Group Inc.
|
| Trade date: | Feb. 22
|
| Settlement date: | Feb. 29
|
| Ratings: Moody’s: A1
|
| Standard & Poor’s: AA-
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 28, 2018
|
| Coupon: | 1.4%
|
| Price: | Par
|
| Yield: | 1.4%
|
| Spread: | Treasuries plus 65 bps
|
| Price guidance: | Treasuries plus 70 bps area, tightened from Treasuries plus 80 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Two-year floaters
|
| Amount: | $1 billion
|
| Maturity: | Feb. 28, 2018
|
| Coupon: | Libor plus 60 bps
|
| Price: | Par
|
| Yield: | Libor plus 60 bps
|
| Price guidance: | Libor equivalent to two-year fixed-rate notes
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 28, 2019
|
| Coupon: | 1.6%
|
| Price: | 99.971
|
| Yield: | 1.61%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 75 bps area, tightened from Treasuries plus 90 bps area
|
| Make-whole call: | Treasuries plus 12.5 bps
|
|
|
| Five-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Feb. 28, 2021
|
| Coupon: | 2.2%
|
| Price: | 99.808
|
| Yield: | 2.241%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, tightened from Treasuries plus 120 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 28, 2023
|
| Coupon: | 2.6%
|
| Price: | 99.836
|
| Yield: | 2.626%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, tightened from Treasuries plus 130 bps area
|
| Make-whole call: Treasuries plus 20 bps
|
|
|
| Ten-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 28, 2026
|
| Coupon: | 2.95%
|
| Price: | 99.924
|
| Yield: | 2.959%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, tightened from Treasuries plus 145 bps area
|
| Make-whole call: | Treasuries plus 25 bps
|
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