Broadcom (NASDAQ:AVGO) Enters into Underwriting Agreement for Senior Notes Offering

On January 6, 2025, Broadcom Inc. disclosed in an 8-K filing that it had engaged in an underwriting agreement with several underwriters, including Wells Fargo Securities, LLC, Citigroup Global Markets Inc., PNC Capital Markets LLC, and Scotia Capital, for the issuance and sale of $3 billion aggregate principal amount of senior notes. This offering comprises $1.1 billion of 4.800% senior notes due 2028, $800 million of 5.050% senior notes due 2030, and $1.1 billion of 5.200% senior notes due 2032, collectively referred to as “Notes.”

The Notes, registered under the Securities Act of 1933, were issued as part of Broadcom’s registration statement on Form S-3ASR (File No. 333-280715) filed on July 8, 2024. The company filed a prospectus supplement with the U.S. Securities and Exchange Commission (SEC) on January 8, 2025, outlining the final terms of the Notes under Rule 424(b)(2) of the Act. They were issued under the Indenture, initially dated July 12, 2024 (the “Base Indenture”), with further specifications provided in the Supplemental Indenture No. 3 dated January 10, 2025, between Broadcom and the Trustee.

Each series of Notes will mature on April 15 of their respective years (2028, 2030, and 2032) and rank equally in right of payment with all existing and future unsecured, unsubordinated obligations of Broadcom. The Notes will not be guaranteed by any of the company’s subsidiaries, resulting in structural subordination to the debts of its subsidiaries.

Broadcom intends to utilize the net proceeds from this offering for general corporate purposes and debt repayments. For more detailed information on the offering and the terms and conditions of the Notes, Broadcom advises referring to the Prospectus Supplement issued on January 6, 2025.

The 8-K filing also includes relevant supporting documents such as the Underwriting Agreement, Base Indenture, Supplemental Indenture, and forms of the Notes, available as exhibits attached to the filing.

The company encourages interested parties to examine these documents for a comprehensive understanding of the offering. This summary does not encompass all details and is contingent on the referenced exhibits for comprehensive information and clarity.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Broadcom’s 8K filing here.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.