New Issue: Broadcom prices $600 million of senior notes in tranches due 2024, 2044

By Aleesia Forni

Virginia Beach, July 24 – Broadcom Corp. was in Thursday’s market with a $600 million offering of senior notes in tranches due 2024 and 2034, according to a market source and a FWP filed with the Securities and Exchange Commission.

The $350 million of 3.5% 10-year notes priced at 99.615 to yield 3.546%, or Treasuries plus 103 basis points.

There was also $250 million of 4.5% 20-year notes sold at 99.4 to yield 4.546%, or Treasuries plus 125 bps.

J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

Proceeds from the offering will be used for general corporate purposes, including the potential redemption of up to $400 million of the company’s 2.375% senior notes due 2015.

The company makes semiconductors for wired and wireless communication and is based in Irvine, Calif.

Issuer: Broadcom Corp.

Issue: Senior notes

Amount: $600 million

Joint bookrunners: J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC

Senior co-manager: BofA Merrill Lynch

Co-managers: Citigroup Global Markets Inc., Goldman Sachs & Co.

Trade date: July 24

Settlement date: July 29

Ratings: Moody’s: A2

Standard & Poor’s: A-

Distribution: SEC-registered

10-year notes

Amount: $350 million

Maturity: Aug. 1, 2024

Coupon: 3.5%

Price: 99.615

Yield: 3.546%

Spread: Treasuries plus 103 bps

Price talk: Treasuries plus 105 bps area

Make-whole call: Treasuries plus 15 bps prior to May 1, 2024, then callable at par

20-year notes

Amount: $250 million

Maturity: Aug. 1, 2034

Coupon: 4.5%

Price: 99.4

Yield: 4.546%

Spread: Treasuries plus 125 bps

Price talk: Treasuries plus 125 bps

Make-whole call: Treasuries plus 20 bps prior to Feb. 1, 2034, then callable at par

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