Network equipment maker Cisco Systems, Inc. (CSCO) said Monday that it priced three series of senior unsecured notes for a total principal amount of $5 billion. The offering is expected to close on November 17, 2009. Cisco said it intends to use the offerings' net proceeds for general corporate purposes.
The company noted that of these notes, $500 million will mature in November 2014 and will bear interest at an annual rate of 2.90%. Further, $2.5 billion worth notes, with interest at an annual rate of 4.45%, will mature in January 2020 and $2 billion notes will mature in January 2040 and will bear interest at an annual rate of 5.50%.
The 2.90% notes due November 2014 were priced to yield 2.955%, while the 4.45% notes due January 2020, and the 5.50% notes due January 2040 were priced to yield 4.469% and 5.679%, respectively.
In an early statement, Cisco said that it is extending the acceptance period for its recommended public cash offer to acquire all outstanding shares in the Norwegian videoconferencing company Tandberg ASA, which now expires on November 18, 2009. The company noted that there are no changes in the terms and conditions set out in the offer document.
It was in early October that Cisco announced its deal to acquire Tandberg of Oslo, Norway through a cash tender offer for 153.50 Norwegian Kroner per share, totaling about NOK 17.2 billion, or $3.0 billion. The acquisition is expected to close during the first half of calendar year 2010.
The board of Tandberg has unanimously recommended that shareholders accept the voluntary cash offer.
In mid-October, the Swedish brokerage SEB Enskilda, which represents the 21 shareholders in Tandberg, reportedly communicated to Cisco that the shareholders intend to reject the offer for Tandberg as too low. These shareholders, representing about 24% of the outstanding shares in Tandberg, said they do not intend to tender their shares at the current offer terms, according to reports.
CSCO closed Monday's regular trading session at $23.99, up $0.17 or 0.71%, on a volume of 46.89 million shares.
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