Transaction Summary:
Intel Corporation (NASDAQ: INTC) issued $2.00 billion principal amount of 3.25 percent junior subordinated convertible debentures due 2039. The debentures were offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, the underwriters also fully exercised their option to purchase $250 million principal amount of debentures to cover overallotments. Needham & Company acted as a co-manager for this transaction which priced in July 2009. Intel intends to use up to $1.5 billion of the net proceeds to purchase shares of its common stock concurrently with, or shortly after, pricing of the debentures from institutional investors in negotiated transactions through one or more of the initial purchasers, as Intel’s agent and under an accelerated stock repurchase program with one of the initial purchasers. Intel intends to use the remainder of the proceeds for general corporate purposes.