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Broadcom Inc. Announces Pricing Terms of its Private Exchange Offers of Certain Outstanding Notes for New Notes

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SAN JOSE, Calif., March 29, 2021 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO) ("Broadcom" or the "Company") announced today the pricing terms of the Company's new notes due 2033 (the "New 2033 Notes") and new notes due 2034 (the "New 2034 Notes" and, together with the New 2033 Notes, the "New Notes") to be issued in connection with its offers to eligible holders (together, the "Exchange Offers") of the Company's or its subsidiaries' Pool 1 Existing Notes and Pool 2 Existing Notes listed in the tables below (collectively, the "Existing Notes") to exchange Pool 1 Existing Notes for consideration consisting of up to $2,250,000,000 aggregate principal amount of the New 2033 Notes (the "Aggregate Maximum Pool 1 Exchange Cap") and a cash payment, and to exchange Pool 2 Existing Notes for consideration of up to $3,250,000,000 aggregate principal amount of the New 2034 Notes (the "Aggregate Maximum Pool 2 Exchange Cap" and, together with the Aggregate Maximum Pool 1 Exchange Cap, the "Aggregate Maximum Exchange Cap") and a cash payment, the complete terms and conditions of which are set forth in an offering memorandum, dated March 15, 2021 (the "Offering Memorandum"). The Aggregate Maximum Cap of $5.5 billion represents an increase in size from the previously announced Aggregate Maximum Exchange Cap of $5.0 billion. As a result of reaching the Aggregate Maximum Exchange Cap by the Early Participation Date, no Existing Notes tendered for exchange after the Early Participation Date will be accepted for exchange, regardless of priority level. Existing Notes not accepted for exchange will be returned promptly to the tendering holders in accordance with the Offering Memorandum. Based on these results, it is anticipated that the Pari Guarantee Release Clause will be triggered and, accordingly, the New Notes will be issued without guarantees. Capitalized terms not defined herein shall have the meanings ascribed to them in the Offering Memorandum.

The aggregate principal amount, fixed spread and interest rate of each series of New Notes expected to be issued by the Company is set forth in the table below:

Title of Security

Aggregate Principal

Amount Expected to be

Issued

Reference U.S. Treasury

Security

Fixed Spread (bps)

Interest Rate(1)

3.419% Senior Notes
due 2033

$2,249,998,000

1.125% due

February 15,

2031

173

3.419%

3.469% Senior Notes
due 2034

$3,250,000,000

1.125% due

February 15,

2031

178

3.469%


(1) The interest rate reflects the bid-side yield on the Reference UST Security plus the applicable fixed spread, calculated in accordance with the procedures set forth in the Offering Memorandum. The Reference UST Security with respect to the New 2033 Notes and the New 2034 Notes had a bid-side yield of 1.689% as of the Pricing Time of the Exchange Offers.

For each $1,000 principal amount of each series of Existing Notes validly tendered and not validly withdrawn as of the Early Participation Date and accepted for exchange by the Company, the following table sets forth the applicable yield and the Total Consideration (subject to rounding and cash in lieu of fractional amounts of New Notes) to be received by Eligible Holders, as priced below:

Pool 1 Offers

CUSIP
Numbers

Title of
Security

Fixed
Spread(bps)

Reference U.S.
Treasury
Security; Bid Side
Yield

Yield(1)

Total Consideration(2)

11134L AP4 (Exch)

3.125% Senior
Notes due
1/15/2025, issued
by Broadcom
Corporation

40

2.250% due
November 15,
2024; 0.492%

0.892%

$1,079.42

11135F BC4 (Exch)

4.700% Senior
Notes due
4/15/2025, issued
by the Company

50

1.125% due
February 28, 2025;
0.586%

1.086%

$1,139.56

11135F AT8 (144A)
U1109M AM8 (Reg S)
11135F BB6 (Exch)

3.150% Senior
Notes due
11/15/2025, issued
by the Company

50

0.250% due
September 30,
2025; 0.750%

1.250%

$1,083.58


(1) The yield reflects the bid-side yield on the Reference UST Security plus the applicable fixed spread, calculated in accordance with the procedures set forth in the Offering Memorandum.

(2) The Total Consideration includes an Early Participation Payment of $50 (payable in applicable New Notes) for each $1,000 principal amount of each series of Existing Notes validly tendered at or prior to the Early Participation Date and accepted for exchange.

Pool 2 Offers

CUSIP
Numbers

Title of
Security

Fixed
Spread(bps)

Reference U.S.
Treasury
Security; Bid Side
Yield

Yield(1)

Total Consideration(2)

11134L AE9 (144A)
U1108L AC3 (Reg S)
11134L AF6

3.625% Senior Notes, due
1/15/2024, issued
by Broadcom Corporation

25

0.250% due
November 15,
2023; 0.241%

0.491%

$1,081.55







11135 AD3 (144A)
U1109M AD8 (Reg S)
11135F AY7 (Exch)

3.625% Senior Notes, due
10/15/2024, issued
by the Company

25

1.250% due
August 31, 2024;
0.441%

0.691%

$1,100.02







11135F AE1 (144A)
U1109M AE6 (Reg S)
11135F AZ4 (Exch)

4.250% Senior Notes, due
4/15/2026, issued
by the Company

85

0.500% due
February 28, 2026;
0.848%

1.698%

$1,118.86







11134L AG4 (144A)
U1108L AD1 (Reg S)
11134L AH2 (Exch)

3.875% Senior Notes, due
1/15/2027, issued
by Broadcom Corporation

115

0.500% due
February 28, 2026;
0.848%

1.998%

$1,097.95







12673P AJ4 (144A)

4.700% Senior Notes, due
3/15/2027, issued
by CA, Inc.

125

0.500% due
February 28, 2026;
0.848%

2.098%

$1,139.25

11135F AM3 (144A)
U1109M AJ5 (Reg S)
11135F AN1 (Exch)

3.459% Senior Notes, due
9/15/2026, issued
by the Company

100

0.500% due
February 28, 2026;
0.848%

1.848%

$1,080.83


(1) The yield reflects the bid-side yield on the Reference UST Security plus the applicable fixed spread, calculated in accordance with the procedures set forth in the Offering Memorandum.

(2) The Total Consideration includes an Early Participation Payment of $50 (payable in applicable New Notes) for each $1,000 principal amount of each series of Existing Notes validly tendered at or prior to the Early Participation Date and accepted for exchange.

The table below identifies the aggregate principal amount of each series of Pool 1 Existing Notes validly tendered (and not validly withdrawn) in the Pool 1 Offers as of the Early Participation Date and the principal amount of each series of Pool 1 Existing Notes that the Company expects to accept for exchange on the Early Settlement Date:

Pool 1 Offers

CUSIP
Numbers

Title of
Security
(collectively,
the "Pool 1
Existing
Notes")

Principal
Amount
Outstanding

Acceptance
Priority
Level(1)

Principal
Amount
Tendered(2)

Principal
Amount
Accepted by
Broadcom

Early
Participant
Payment(4)(6)

Total
Consideration
Amount(5)(6)

Principal
Amount of
New
Notes(6)


Cash
Payment(6)

11134L AP4
(Exch)

3.125%
Senior Notes
due
1/15/2025,
issued by
Broadcom
Corporation

$1,000,000,000

1

$414,931,000

$414,931,000

$50

$1,079.42

$1,000

$79.42

11135F BC4
(Exch)

4.700%
Senior Notes
due
4/15/2025,
issued by
the
Company

$2,250,000,000

2

$1,002,653,000

$1,002,653,000

$50

$1,139.56

$1,000

$139.56

11135F AT8
(144A)

U1109M AM8
(Reg S)

11135F BB6
(Exch)

3.150%
Senior Notes
due
11/15/2025,
issued by
the
Company

$2,250,000,000

3

$1,085,219,000

$832,414,000(3)

$50

$1,083.58

$1,000

$83.58

Total:




$2,502,803,000

$2,249,998,000






(1) The Company expects to accept for exchange these Pool 1 Existing Notes in accordance with the acceptance priority levels set forth in this table.

(2) The aggregate principal amounts of Pool 1 Existing Notes that have been validly tendered for exchange and not validly withdrawn, as of 5:00 p.m., New York City time, on March 26, 2021, based on information provided by the information and exchange agent to the Company.

(3) Pro ration factor of 76.737%.

(4) For the avoidance of doubt, the $50 per $1,000 Early Participant Payment is included within the Total Consideration and is not in addition to it.

(5) Does not reflect any accrued and unpaid interest. The Company will pay accrued and unpaid interest on the Existing Notes up to, but excluding, the date on which the exchange of Existing Notes accepted for exchange is settled.

(6) Per $1,000 principal amount of Pool 1 Notes.

The table below identifies the aggregate principal amount of each series of Pool 2 Existing Notes validly tendered (and not validly withdrawn) in the Pool 2 Offers as of the Early Participation Date and the principal amount of each series of Pool 2 Existing Notes that the Company expects to accept for exchange on the Early Settlement Date:

Pool 2 Offers

CUSIP
Numbers

Title of
Security
(collectively,
the "Pool 2
Existing
Notes")

Principal
Amount
Outstanding

Acceptance
Priority
Level(1)

Principal
Amount
Tendered(2)

Principal
Amount
Accepted by
Broadcom

Early
Participant
Payment(4)

Total
Consideration
Amount(5)(6)

Principal
Amount of
New Notes(6)

Cash
Payment(6)

11134L AE9
(144A)
U1108L AC3
(Reg S)
11134L AF6

3.625%
Senior Notes,
due
1/15/2024,
issued by
Broadcom
Corporation

$1,352,128,000

1

$523,527,000

$523,527,000

$50

$1,081.55

$1,000

$81.55

11135F AD3
(144A)
U1109M AD8
(Reg S)
11135F AY7
(Exch)

3.625%
Senior Notes,
due
10/15/2024,
issued by the
Company

$1,044,409,000

2

$422,263,000

$422,263,000

$50

$1,100.02

$1,000

$100.02

11135F AE1
(144A)
U1109M AE6
(Reg S)
11135F AZ4
(Exch)

4.250%
Senior Notes,
due
4/15/2026,
issued by the
Company

$2,500,000,000

3

$1,317,164,000

$1,317,164,000

$50

$1,118.86

$1,000

$118.86

11134L AG4
(144A)
U1108L AD1
(Reg S)
11134L AH2
(Exch)

3.875%
Senior Notes,
due
1/15/2027,
issued by
Broadcom
Corporation

$4,800,000,000

4

$1,873,030,000

$987,046,000(3)

$50

$1,097.95

$1,000

$97.95

12673P AJ4
(144A)

4.700%

Senior Notes,

due
3/15/2027,
issued by
CA, Inc.

$350,000,000

5

$109,829,000

11135F AM3
(144A)
U1109M AJ5
(Reg S)
11135F AN1
(Exch)

3.459%
Senior Notes,
due
9/15/2026,
issued by the
Company

$1,695,320,000

6

$653,358,000

Total:




$4,899,171,000

$3,250,000,000






(1) The Company expects to accept for exchange these Pool 2 Existing Notes in accordance with the acceptance priority levels set forth in this table.

(2) The aggregate principal amounts of Pool 2 Existing Notes that have been validly tendered for exchange and not validly withdrawn, as of 5:00 p.m., New York City time, on March 26, 2021, based on information provided by the information and exchange agent to the Company.

(3) Pro ration factor of 52.717%.

(4) For the avoidance of doubt, the $50 per $1,000 Early Participant Payment is included within the Total Consideration and is not in addition to it.

(5) Does not reflect any accrued and unpaid interest. The Company will pay accrued and unpaid interest on the Existing Notes up to, but excluding, the date on which the exchange of Existing Notes accepted for exchange is settled.

(6) Per $1,000 principal amount of Pool 2 Notes.

The Exchange Offers are being conducted upon the terms and subject to the conditions set forth in the Offering Memorandum. Consummation of the Exchange Offers is subject to a number of conditions.

For each $1,000 principal amount of Existing Notes validly tendered and not validly withdrawn, and accepted for exchange by the Company, Eligible Holders of such Existing Notes will also receive cash payment for accrued and unpaid interest on the applicable series of Existing Notes up to, but excluding, the date on which the exchange of Existing Notes accepted for exchange is settled, as well as a cash payment due in lieu of fractional amounts of New Notes.

The Exchange Offers will expire at 12:00 midnight, New York City time, at the end of April 9, 2021, unless extended or earlier terminated by the Company. In accordance with the terms of the Exchange Offers, the Withdrawal Deadline relating to the Exchange Offers occurred at 5:00 p.m., New York City time, on March 26, 2021. As a result, all Existing Notes that have been validly tendered and not validly withdrawn, and any Existing Notes tendered after the Withdrawal Deadline, are irrevocable, except in certain limited circumstances where additional withdrawal rights are required by law.

If and when issued, the New Notes will not have been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws. The New Notes may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Company will enter into a registration rights agreement with respect to the New Notes. The New Notes will be unsecured obligations of the Company and will rank pari passu with all other unsecured and unsubordinated indebtedness of the Company.

The Exchange Offers are only being made, and copies of the documents relating to the Exchange Offers will only be made available, to a holder of Existing Notes who has certified in an eligibility certification certain matters to the Company, including its status as a "qualified institutional buyer" as defined in Rule 144A under the Securities Act or who is a person other than a "U.S. person" as defined in Rule 902 under the Securities Act. Holders of Existing Notes who desire access to the electronic eligibility form should contact D.F. King & Co., Inc., the information agent (the "Information Agent") for the Exchange Offers, at (866) 416-0577 (U.S. Toll-free) or (212) 269-5550 (Collect). Holders that wish to receive the Offering Memorandum can certify eligibility on the eligibility website at: http://www.dfking.com/broadcom. In connection with the Exchange Offers, BofA Securities and HSBC are acting as dealer managers (collectively, the "Dealer Managers"). Questions or requests for assistance in relation to the Exchange Offers may be directed to the Dealer Managers at the addresses and telephone numbers set forth below.

The Dealer Managers

BofA Securities
620 S. Tryon Street, 20th Floor
Charlotte, North Carolina 28255
Attention: Liability Management
Collect: (980) 387-3907

HSBC
452 Fifth Avenue
New York, New York 10018
Attention: Global Liability
Management Group
Toll-Free: (888) HSBC-4LM
Collect: (212) 525-5552

The Information and Tender Agent

D.F. King & Co., Inc.

48 Wall Street, 22nd Floor
New York, New York 10005
Attention: Andrew Beck
Banks and Brokers call: (212) 269-5550
Toll-free: (866) 416-0577

This news release does not constitute an offer or an invitation by the Company to participate in the Exchange Offers in any jurisdiction in which it is unlawful to make such an offer or solicitation in such jurisdiction. None of Broadcom, the Information Agent or the Dealer Managers makes any recommendation as to whether any eligible holders should participate in the applicable Exchange Offer, and no one has been authorized by any of them to make such a recommendation. Eligible holders must make their own decisions as to whether to exchange their Existing Notes, and if so, the principal amount of such Existing Notes to be exchanged.

About Broadcom Inc.

Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation. (AVGO-P)

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance and other statements identified by words such as "will", "expect", "believe", "anticipate", "estimate", "should", "intend", "plan", "potential", "predict" "project", "aim", and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of the management of Broadcom, as well as assumptions made by, and information currently available to, such management, current market trends and market conditions and involve risks and uncertainties, many of which are outside the Company's and management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.

Particular uncertainties that could materially affect future results include risks associated with: the COVID-19 pandemic, which has had, and will likely continue to have, a negative impact on the global economy and disrupt normal business activity, and which may have an adverse effect on our results of operations; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; global economic conditions and concerns; global political and economic conditions; government regulations, trade restrictions and trade tensions; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; dependence on and risks associated with distributors and resellers of our products; dependence on senior management and our ability to attract and retain qualified personnel; any acquisitions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; involvement in legal or administrative proceedings; quarterly and annual fluctuations in operating results; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; cyclicality in the semiconductor industry or in our target markets; our competitive performance and ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers' manufacturing facilities, warehouses or other significant operations; our ability to improve our manufacturing efficiency and quality; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; availability of third party software used in our products; use of open source code sources in our products; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims; market acceptance of the end products into which our products are designed; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; our ability to protect against a breach of security systems; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs and our ability to maintain tax concessions in certain jurisdictions; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result.

Our filings with the Securities and Exchange Commission ("SEC"), which you may obtain for free at the SEC's website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Broadcom Inc.
Ji Yoo
Investor Relations
408-433-8000
investor.relations@broadcom.com

Cision
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SOURCE Broadcom Inc.