Cisco systems announces seven-tranche US dollar bond sale
LONDON, Feb 24 (IFR) - Cisco Systems has hired a group of banks to lead manage a seven-tranche US dollar bond sale, which will be used to repay US$3.75bn of bonds approaching maturity and return capital to shareholders, one of the lead managers said on Monday.
Cisco, rated A1/AA-, expects to launch the deal later on Monday which will include 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.
Barclays, Bank of America Merrill Lynch, Deutsche Bank and JP Morgan are the active bookrunners, while Citigroup, HSBC, and Wells Fargo are passives.
The proceeds will be used for general corporate purposes, including the repayment of outstanding senior notes that mature in 2014 and returning capital to shareholders following its previously announced capital allocation strategy through the repurchase of common stock and the payment of cash dividends.
DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.