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.