Summary
Analog Devices Inc. (ADI) announced on December 14, 2015, the successful issuance of $1.25 billion in aggregate principal amount of senior notes through a public offering. This offering comprised $850 million of 3.900% Senior Notes due in 2025 and $400 million of 5.300% Senior Notes due in 2045. The company utilized a registration statement on Form S-3 and related prospectus and prospectus supplement for this transaction. The issuance of these notes, which are unsecured and rank equally with other senior unsecured indebtedness, provides Analog Devices with additional capital. The proceeds from this offering are likely intended for general corporate purposes, potentially including funding strategic initiatives, acquisitions, or managing its debt obligations. The terms include options for early redemption with a make-whole premium or at par, depending on the proximity to maturity.
Key Highlights
- 1ADI issued $1.25 billion in senior notes: $850 million of 3.900% notes due 2025 and $400 million of 5.300% notes due 2045.
- 2The notes were issued through a public offering under a Form S-3 registration statement.
- 3Interest on the notes is payable semi-annually on June 15 and December 15.
- 4The company has the option to redeem the notes early, with varying conditions for the 2025 and 2045 notes.
- 5The notes are unsecured and rank equally with other senior unsecured indebtedness of Analog Devices.
- 6The transaction was facilitated by an underwriting agreement with Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated.