01—Abstract
Summary
Summary of the 8-K filed October 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Keysight Technologies, Inc. (KEYS) announced on October 9, 2024, the issuance of $600 milliona in aggregate principal amount of 4.950% Notes due 2034.
This debt offering was made under an effective shelf registration statement and was underwritten by major financial institutions. The primary use of the net proceeds is to refinance $600 millionb of existing 4.550% Senior Notes that mature on October 30, 2024, indicating a proactive approach to managing its debt obligations and potentially extending its debt maturity profile.
02—Key points
Key Highlights
- Issuance of $600 million in 4.950% Senior Notes due 2034.
- Proceeds intended to refinance $600 million of 4.550% Senior Notes maturing October 30, 2024.
- Notes are unsecured, unsubordinated obligations ranking equally with other senior unsecured debt.
- Maturity date set for October 15, 2034.
- Semi-annual interest payments of 4.950% per annum, payable on April 15 and October 15.
- Company has the option to redeem the notes under specific conditions, with a "Par Call Date" three months prior to maturity.
- Change of control provisions trigger a repurchase offer at 101% of principal plus accrued interest.
03—Questions
Frequently Asked Questions
What is the purpose of this new debt issuance?
Keysight Technologies is issuing these new notes primarily to refinance its upcoming $600 million maturity of 4.550% Senior Notes due October 30, 2024. This action helps manage its debt maturity and maintain its financial flexibility.
What is the interest rate and maturity of the new notes?
The new notes carry a coupon rate of 4.950% per annum and will mature on October 15, 2034. This represents a slight increase in the interest rate compared to the notes being refinanced.
Are these notes secured?
No, the Notes are unsecured, unsubordinated obligations of the Company. They rank equally in right of payment with all existing and future unsecured and unsubordinated obligations of Keysight Technologies.
What are the conditions for redeeming these notes early?
Keysight has the option to redeem the notes in whole or in part. If redeemed before July 15, 2034 (three months prior to maturity), the redemption price is based on a discounted present value of remaining payments plus 20 basis points over the treasury rate, or 100% of the principal if redeemed on or after that date. In both cases, accrued interest is also paid.
04—Continue