8-KMaterial AgreementsOther EventsExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Material Agreement (Feb 17, 2009)

Filed February 17, 2009For Securities:CSCO

Summary

This Form 8-K filing by Cisco Systems, Inc. (CSCO) on February 17, 2009, primarily announces the official entry into a material definitive agreement related to a significant debt offering. The company entered into an Indenture with The Bank of New York Mellon Trust Company, N.A., as trustee, to facilitate the issuance of $2 billion in 4.95% Senior Notes due 2019 and $2 billion in 5.90% Senior Notes due 2039, totaling $4 billion in aggregate principal amount. This filing is crucial for investors as it details the company's capital-raising activities during a period of economic uncertainty. The issuance of long-term debt suggests Cisco's strategic intent to secure funding for potential growth, operations, or acquisitions, while also indicating a degree of confidence in its financial stability and future prospects despite the prevailing market conditions. Investors should review the terms of these notes, as detailed in previously filed documents and incorporated by reference, to understand the associated debt obligations and interest payments.

Key Highlights

  • 1Cisco Systems, Inc. entered into an Indenture on February 17, 2009, with The Bank of New York Mellon Trust Company, N.A., as trustee.
  • 2The Indenture governs the issuance of $2 billion in 4.95% Senior Notes due 2019.
  • 3The Indenture also governs the issuance of $2 billion in 5.90% Senior Notes due 2039.
  • 4The total aggregate principal amount of the debt offering is $4 billion.
  • 5The company is filing the Indenture and forms of notes as exhibits to this 8-K.
  • 6Legal opinions and consents from Fenwick & West LLP are also filed as exhibits.
  • 7The debt offering is registered under a Form S-3 registration statement (File No. 333-157177).

Frequently Asked Questions

The main purpose of this 8-K filing is to report Cisco Systems, Inc.'s entry into a material definitive agreement, specifically an Indenture, related to the issuance of $4 billion in aggregate principal amount of senior notes.

Cisco is issuing $2 billion of 4.95% Senior Notes due 2019 and $2 billion of 5.90% Senior Notes due 2039, for a total of $4 billion in senior debt. The filing incorporates by reference details from a previous filing on February 13, 2009, which describes the material terms of the Indenture and the notes.

While the filing doesn't explicitly state the use of proceeds, raising a significant amount of debt typically indicates a company's strategy to ensure liquidity, fund potential acquisitions, invest in research and development, or manage its capital structure. For Cisco, this could reflect confidence in its business model and future growth opportunities, even amidst economic uncertainty, allowing it to maintain financial flexibility.

Detailed information about the Indenture and the forms of the notes can be found in Exhibit No. 4.1 and Exhibit No. 4.2 filed with this Form 8-K. Investors can also refer to Cisco's previous Form 8-K filing on February 13, 2009, and the Form S-3 registration statement (File No. 333-157177), which incorporate these documents by reference.