Intel to Sell $1.4 Billion in Convertible Securities
Posted on: Tuesday, 13 December 2005, 15:00 CST
By Bloomberg News
Intel Corp., the world's biggest computer-chip maker, plans to sell $1.4 billion in convertible securities, marking its first debt sale since 2001.
The debentures, convertible into Intel shares, would be due in 2035, the Santa Clara, Calif.-based company said in statement Monday.
Intel has about 350 workers in Riverton.
The sale will help Intel, which has $16 billion in cash and $432 million in debt, take advantage of lower interest rates and demand for its stock, said RBC Capital Markets analyst Apjit Walia. The company said it will use proceeds for "general corporate purposes" and possibly for share buybacks.
"The financial attractiveness of offering bonds was appealing at this time," Intel spokesman Tom Beermann said.
Intel shares have gained 14 percent this year. They rose 54 cents to close at $26.62 Monday in Nasdaq Stock Market composite trading, before the announcement.
The conversion rate and terms will be set after negotiations with the purchasers.
Source: Deseret News (Salt Lake City)
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