Cisco launches biggest high-grade bond of the year

Mon Feb 24, 2014 1:50pm EST

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

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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