8-KMaterial AgreementsOther EventsExhibits & Filings

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

Filed November 17, 2009For Securities:CSCO

Summary

This 8-K filing by Cisco Systems, Inc. (CSCO) on November 17, 2009, primarily details the finalization of a significant debt offering. The company entered into an Indenture with The Bank of New York Mellon Trust Company, N.A. to facilitate the issuance of a substantial aggregate principal amount of senior notes, totaling $5 billion across three tranches with varying maturity dates and interest rates. These notes include $500 million of 2.90% Senior Notes due 2014, $2.5 billion of 4.45% Senior Notes due 2020, and $2 billion of 5.50% Senior Notes due 2040. The filing serves to incorporate by reference the indenture and forms of notes, previously described in a November 13, 2009 filing, into the company's effective registration statement on Form S-3. This action by Cisco indicates a strategic move to raise capital through the bond markets.

Key Highlights

  • 1Cisco Systems, Inc. finalized a material definitive agreement for a debt offering.
  • 2The company issued $500 million in 2.90% Senior Notes due 2014.
  • 3Cisco also issued $2.5 billion in 4.45% Senior Notes due 2020.
  • 4An additional $2 billion in 5.50% Senior Notes due 2040 was issued.
  • 5The total aggregate principal amount of senior notes offered is $5 billion.
  • 6The Indenture was entered into with The Bank of New York Mellon Trust Company, N.A. as trustee.
  • 7These debt issuances are linked to Cisco's effective registration statement on Form S-3.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Cisco Systems, Inc.'s entry into a material definitive agreement related to a significant debt offering, specifically the issuance of $5 billion in senior notes.

Cisco issued three tranches of senior notes: $500 million of 2.90% Senior Notes due 2014, $2.5 billion of 4.45% Senior Notes due 2020, and $2 billion of 5.50% Senior Notes due 2040, totaling $5 billion.

The filing itself does not explicitly state the intended use of the proceeds from this debt offering. However, such offerings are typically used for general corporate purposes, which can include funding operations, acquisitions, research and development, or refinancing existing debt.

More detailed information about the material terms of the Indenture and the related notes is available by referencing Cisco's previous Form 8-K filing dated November 13, 2009, and the exhibits filed with this current report, specifically Exhibit No. 4.1 (Indenture) and Exhibit No. 4.2 (Forms of Global Note).