Summary
This 8-K filing from Cisco Systems, Inc. (CSCO) on November 13, 2009, primarily announces the company's entry into a material definitive agreement for an underwritten public offering of investment grade notes. This offering aims to raise significant capital through the issuance of three series of senior unsecured notes with varying maturity dates and interest rates. The issuance demonstrates Cisco's proactive approach to debt financing and capital management during this period.
Key Highlights
- 1Cisco entered into an underwriting agreement on November 9, 2009, for a public offering of senior notes.
- 2The offering is expected to be completed on November 17, 2009.
- 3Total principal amount of notes to be issued is $5 billion across three tranches.
- 4Issuance includes $500 million of 2.90% Senior Notes due 2014.
- 5Issuance includes $2.5 billion of 4.45% Senior Notes due 2020.
- 6Issuance includes $2 billion of 5.50% Senior Notes due 2040.
- 7The notes are unsecured and rank equally with other senior unsecured indebtedness, but effectively junior to subsidiary liabilities.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s entry into a material definitive agreement for an underwritten public offering of senior notes.
Cisco is raising a total of $5 billion through the issuance of three series of senior notes: $500 million in 2014 notes, $2.5 billion in 2020 notes, and $2 billion in 2040 notes.
The notes have fixed annual interest rates of 2.90% (2014 maturity), 4.45% (2020 maturity), and 5.50% (2040 maturity). They are senior unsecured notes, with specific redemption provisions and customary covenants outlined in the Indenture.
The notes are senior unsecured notes and will rank equally in right of payment with Cisco's other existing and future senior unsecured indebtedness. However, they will effectively rank junior to all liabilities of Cisco's subsidiaries.