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HG bonds: Maxim sells new 2023 notes to fund buyback; terms

Infrequent issuer Maxim Integrated Products today completed a $500 million offering of 3.375% notes due 2023 in line with price talk at T+145, or 3.509%. The issue printed on the tight side of the guidance in the T+150 area.

Proceeds will be used to repurchase shares of the company’s common stock and for general corporate purposes. At the end of the second quarter for fiscal 2013, the company had $435.6 million remaining under its $750 million share-buyback program. Additionally, Maxim will use cash on hand to redeem, repurchase, or repay, at maturity, all of its $300 million outstanding of 3.45% notes due June 14, according to filings.

Following the redemption of the 3.45% notes, the new 2023 issue will be the only long-term debt on Maxim’s balance sheet.

San Jose, Calif.-based Maxim designs, manufactures, and sells semiconductor products. Terms:

Issuer Maxim Integrated Products
Ratings BBB+/Baa1
Amount $500 million
Issue SEC-registered senior notes
Coupon 3.375%
Price 98.879
Yield 3.509%
Spread T+145
Maturity March 15, 2023
Call Make-whole T+25 until notes are callable from three months prior to maturity
Trade March 11, 2018
Settle March 18, 2013
Books JPM(act)/GS(pass)
Px Talk T+145; guidance T+150 area;
Notes Proceeds will be used to repurchase shares of the company’s common stock and for general corporate purposes

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