| SAN FRANCISCO
SAN FRANCISCO Dec 4 Intel on Tuesday launched a
$6 billion debt sale to fund share buybacks and other
activities, and the top chipmaker's stock rose more than 2
Intel was offering the bonds in a range of maturities from
five years to 30 years, according to IFR, a Thomson Reuters
Intel said in a filing it plans to use proceeds of the debt
sale for general corporate purposes and for stock buybacks under
its existing share authorization.
"We believe the action should likely prove prudent given low
debt borrowing costs," RBC analyst Doug Freedman said of the
debt offer in a note to clients. "In our view the raise will
likely support increased buybacks."
Intel's stock has dropped 18 percent over the past year as
investors worried about slow PC sales and the company's failure
to expand into mobile gadgets.
It's shares were up 2.3 percent at $20.00 on Tuesday.
"The cost of money is relatively inexpensive and we have an
excellent credit rating. It's sound financial planning," said
Intel spokesman Chuck Mulloy.