8-KMaterial AgreementsOther EventsExhibits & Filings

QUALCOMM INC/DE 8-K Report, Material Agreement (May 11, 2020)

Filed May 11, 2020For Securities:QCOM

Summary

Qualcomm Inc. (QCOM) announced on May 8, 2020, the issuance of $2 billion in aggregate principal amount of senior unsecured notes. This offering comprises $1.2 billion of 2.150% Notes due 2030 and $800 million of 3.250% Notes due 2050. The company entered into an underwriting agreement with BofA Securities, Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC for this registered public offering, which was conducted under its existing shelf registration statement. This debt issuance provides Qualcomm with significant capital, likely for general corporate purposes, refinancing existing debt, or funding strategic initiatives. The interest rates on the notes are relatively low, reflecting favorable market conditions for corporate debt at the time. The indenture governing the notes includes standard provisions for events of default and remedies, offering protection to investors.

Key Highlights

  • 1Issuance of $1.2 billion in 2.150% Notes due 2030.
  • 2Issuance of $800 million in 3.250% Notes due 2050.
  • 3Total aggregate principal amount of new notes issued is $2 billion.
  • 4The notes are senior unsecured obligations of Qualcomm.
  • 5The offering was conducted through a registered public offering under a shelf registration statement.
  • 6Key underwriters include BofA Securities, Goldman Sachs, and J.P. Morgan.
  • 7Interest payments are semiannual, due on May 20 and November 20 each year.

Frequently Asked Questions

While the 8-K filing does not explicitly state the purpose, such debt issuances are typically used by companies for general corporate purposes, which can include refinancing existing debt, funding capital expenditures, research and development, or pursuing strategic acquisitions.

The offering consists of $1.2 billion of 2.150% Notes due May 20, 2030, and $800 million of 3.250% Notes due May 20, 2050. Both are senior unsecured obligations and will pay interest semiannually.

This means the notes are direct debt obligations of Qualcomm and are not backed by any specific collateral. They rank equally with other senior unsecured debt of the company. In the event of bankruptcy or insolvency, holders of these notes would have a claim on the company's assets alongside other senior unsecured creditors.

Yes, the company may redeem some or all of the notes of each series at the applicable redemption price, as detailed in the respective forms of notes and the indenture.