8-KOther EventsExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Feb 29, 2016)

Filed February 29, 2016For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) filed a Form 8-K on February 29, 2016, to report the closing of a significant notes offering. The company successfully raised a substantial amount of capital through the issuance of various senior notes with different maturity dates and interest rates, as well as floating rate notes. This move indicates Cisco's proactive approach to managing its capital structure and potentially funding future growth initiatives, acquisitions, or operational needs. Investors can view this as a sign of financial strength and strategic financial planning. The details of the notes, including principal amounts, interest rates, and maturity dates, provide transparency into the company's debt obligations. The offering was conducted under a shelf registration statement, a common practice for large, established companies to efficiently access capital markets when needed.

Key Highlights

  • 1Cisco Systems closed a notes offering on February 29, 2016.
  • 2The offering included $1,000,000,000 in Floating Rate Notes due February 21, 2018.
  • 3Total fixed-rate notes issued amounted to $8,000,000,000 across various maturities (2018, 2019, 2021, 2023, 2026).
  • 4The aggregate principal amount of all notes issued was $9,000,000,000 ($1 billion floating + $8 billion fixed).
  • 5The notes were issued under an Indenture dated March 3, 2014, and an Officer's Certificate dated February 29, 2016.
  • 6The offering was made pursuant to Cisco's existing Registration Statement on Form S-3.
  • 7Key exhibits filed include the form of Officer's Certificate, a legal opinion, and a consent from legal counsel.

Frequently Asked Questions

This 8-K filing primarily serves to inform the public that Cisco Systems, Inc. has successfully closed a significant offering of corporate notes, detailing the total amount raised and the specific series of notes issued.

Cisco raised a total of $9,000,000,000 in this notes offering, comprising $1,000,000,000 in Floating Rate Notes and $8,000,000,000 in various series of fixed-rate Senior Notes.

Cisco issued Floating Rate Notes due February 21, 2018, and several series of fixed-rate Senior Notes with maturities in 2018, 2019, 2021, 2023, and 2026, carrying interest rates ranging from 1.400% to 2.950% for the fixed-rate notes.

This offering indicates that Cisco has successfully accessed the debt markets to secure a large amount of capital, likely for strategic purposes such as funding operations, investments, potential acquisitions, or refinancing existing debt. It suggests a solid financial position to manage these new obligations.