NEW YORK, Feb 24 (IFR) - Cisco Systems is set to raise US$8 billion from a seven-tranche bond - the biggest investment-grade bond deal of the year. It is also the second largest bond issued by a technology company after Apple's US$17 billion deal in 2013, according to IFR data.
Cisco's bond includes three floating-rate notes maturing in 18-months, three-years and five-years, and four fixed-rate notes maturing in three-years, five-years, seven-years and 10-years.
TRANCHE SPLIT AND SPREADS:
US$850 million 18-month FRN at 3mL+5bp
US$2.4 billion three-year fixed at Treasuries plus 40bp
US$1 billion three-year FRN at 3mL+28bp
US$1.75 billion five-year fixed at Treasuries plus 60bp
US$500 million five-year FRN at 3ML+50bp
US$500 million seven-year at Treasuries plus 75bp
US$1 billion 10-year at Treasuries plus 90bp