Cisco sells $8B worth of bonds


Cisco Systems (CSCO) has raised $8B in the largest corporate-bond sale so far this year and the biggest for investment-grade notes since Verizon sold $49B worth of debt in September.

Cisco plans to use the money to finance stock buybacks and dividends, and to repay $3.75B of notes that mature this year.

Cisco sold debt in seven parts with fixed- and floating-rate securities, with yields ranging from 1.1% to 3.625%.

Moody's rates Cisco at A1 and S&P at AA-.

While Cisco "hasn't had smooth sailing from the equity perspective," says money manager Thomas Chow, "there's overwhelming demand...for well-known issuers with strong fundamentals." Cisco "has a large cash balance and a dominant position in product lines that aren’t going to disappear overnight," Chow adds. (PR)

ETFs: FLOT, BSCE, BSCF, FLTR, FLRN, BSCH, BSCG, BSCI, IBCE, IBCB, BSCK, IBCC, BSCJ, BSCM, IBDC, IBDA, IBDD, IBDB, IBCD, BSCL

From other sites
Comments (2)
  • DeepValueLover
    , contributor
    Comments (11177) | Send Message
     
    Debt is cheap and so are the shares.

     

    This is a rare, RARE opportunity.

     

    All CSCO shareholders should applaud this.
    25 Feb 2014, 05:43 AM Reply Like
  • The_Hammer
    , contributor
    Comments (5052) | Send Message
     
    what csco needs is new mgt.
    25 Feb 2014, 06:58 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs