source: http://www.bloomberg.com/news/2012-12-04/intel-plans-three-part-bond-offering-to-repurchase-common-stock.html?cmpid=yhoo
Intel issued $6 billion of bond for share buy back.
The is the detail:
$3 billion 5-year bond of 1.35%
$1.5 billion 10-year bond of 2.7%
$750 million 20-year of 4%
$750 million 30-year of 4.25%
This is a good move. Intel has good credit and strong financial to get these rates. Intel shares currently has 4.51% dividend. Taking advantage of low interest environment to issue bond and buy back shares actually will save them money and boost working capital.
Let's take a quick look at its balance sheet.
Current ratio went up because they have more cash, and 38.77% of the assets are financed with debt. Given Intel's strong financial and even stronger cash cushion, there is no short term liquidity risk. I plan to increase my position in Intel :)
