Texas Instruments (NASDAQ:TXN) has priced five series of senior unsecured notes, totaling $3B in principal amount, aimed at enhancing its corporate objectives.
The breakdown of the notes is as follows:
$650M of 4.600% senior unsecured notes due February 8, 2027 $650M of 4.600% senior unsecured notes due February 8, 2029 $600M of 4.850% senior unsecured notes due February 8, 2034 $750M of 5.150% senior unsecured notes due February 8, 2054 $350M of 5.050% senior unsecured notes due May 18, 2063
Of note, the $350M of 5.050% notes due 2063 will complement the existing $1.2B aggregate principal amount of 5.050% notes due 2063, initially issued by the company on May 18, 2023.
Each tranche of the notes from 2027 to 2054 represents a new issuance.
TXN intends to deploy the net proceeds from this offering for general corporate purposes.
The offering is set to close on February 8, 2024.
The Dutch Dividend Therapist, a SA contributor, has highlighted concerns about the potential impact on Texas Instruments’ balance sheet, stating, “In order to continue their current policy, they will have to take on more debt. This will worsen their balance sheet in the short term, but if investments lead to significant value creation in the future, this will not be a problem.”
