- 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
Cisco sells $8B worth of bonds
Feb 25 2014, 02:14 ET