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.