Summary
Keysight Technologies, Inc. filed an 8-K on April 6, 2017, to report the closing of its offering of $700 million aggregate principal amount of 4.60% Senior Notes due 2027. The company entered into an underwriting agreement on March 28, 2017, and closed the offering on April 6, 2017. The net proceeds from this issuance are earmarked for a portion of the consideration for the contemplated merger with Ixia, along with associated fees and expenses. This move indicates Keysight's financing strategy for a significant acquisition, providing investors with insight into the capital structure supporting this growth initiative.
Key Highlights
- 1Keysight Technologies closed the sale of $700 million in 4.60% Senior Notes due 2027.
- 2The offering was conducted under an effective shelf registration statement on Form S-3.
- 3Net proceeds are intended to fund a portion of the consideration for the planned merger with Ixia.
- 4The Notes mature on April 6, 2027, and bear a fixed interest rate of 4.60% per annum, payable semi-annually.
- 5The company has the option to redeem the Notes, with specific terms and pricing outlined for redemptions prior to and after January 6, 2027.
- 6The Indenture includes provisions for redemption at a higher price (101% of principal) if the Ixia merger does not close by December 31, 2017, or if the merger agreement is terminated.
- 7A change of control event also triggers an obligation for Keysight to repurchase the Notes at 101% of their principal amount.