8-KOther EventsExhibits & Filings

TEXAS INSTRUMENTS INC 8-K Report, Corporate Update (May 18, 2023)

Filed May 18, 2023For Securities:TXN

Summary

Texas Instruments Incorporated (TXN) announced on May 18, 2023, the completion of a significant debt offering, raising a total of $1.6 billion. This offering consisted of three tranches of senior notes: $200 million of 4.600% Notes due 2028, $200 million of 4.900% Notes due 2033, and $1.2 billion of 4.600% Notes due 2063. The issuance of the 2028 and 2033 notes represents a further offering of existing series, while the 2063 notes constitute a new issuance, providing Texas Instruments with long-term financing. The notes were registered under a previously filed Form S-3 registration statement. This debt issuance is a strategic move by Texas Instruments to bolster its capital structure and potentially fund future growth initiatives, capital expenditures, or other corporate purposes. Investors should note the various interest rates and maturity dates, which indicate the company's approach to managing its debt obligations across different time horizons. The substantial amount raised underscores the company's strong access to capital markets and its ongoing financial management activities.

Key Highlights

  • 1Texas Instruments completed a $1.6 billion debt issuance on May 18, 2023.
  • 2The issuance includes $200 million of 4.600% Notes due 2028 and $200 million of 4.900% Notes due 2033.
  • 3A significant portion, $1.2 billion, was raised through new 5.050% Notes due 2063.
  • 4The 2028 and 2033 notes are fungible with previously issued notes of the same series.
  • 5The offering was conducted under Texas Instruments' effective Form S-3 registration statement.
  • 6The company entered into an underwriting agreement with J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and U.S. Bancorp Investments, Inc.

Frequently Asked Questions

Texas Instruments issued a total of $1,600,000,000 (or $1.6 billion) in aggregate principal amount of notes.

The issuance consists of: $200,000,000 of 4.600% Notes due 2028, $200,000,000 of 4.900% Notes due 2033, and $1,200,000,000 of 5.050% Notes due 2063.

Yes, the 4.600% Notes due 2028 and the 4.900% Notes due 2033 are a further issuance of, and form a single series with, previously issued notes of the same maturity and coupon rate. The 5.050% Notes due 2063 are a new issuance.

The filing does not explicitly state the purpose of the debt issuance. However, such issuances are typically used for general corporate purposes, which can include funding capital expenditures, research and development, potential acquisitions, refinancing existing debt, or managing working capital needs.