Cisco Systems, Inc. (NASDAQ: CSCO) has filed a preliminary prospectus supplement under an existing shelf registration with the SEC this morning for a three-part debt offering. While no final amount was stated, and no terms and no maturities were given, these are likely in the process of getting worked out now. The networking giant plans three maturities of senior notes in an offering via Barclays Capital, Credit Suisse, Deutsche Bank Securities, BofA Merrill Lynch, HSBC, and J.P. Morgan.
The use of funds is the typical “for general corporate purposes,” which includes common stock buybacks, debt repayment, acquisitions, investments, additions to working capital, capital expenditures and advances to or investments in our subsidiaries.
Where this gets interesting is that Cisco ended its most recent quarter with total cash, cash equivalents and investments of $35.4 billion. The company is also expected to post solid earnings ahead and not have any cash flow issues. Cisco already has $10.295 billion in senior notes on the books, with $3 billion of those due in 2011 and another $3 billion due not until 2016. That is different than what a more consolidated balance sheet noted, so here is that maturity schedule listed in the filing:
Long-term Debt Schedule $Million
5.25% Senior Notes due 2011 $3,000
5.50% Senior Notes due 2016 $3,000
4.95% Senior Notes due 2019 $2,000
5.90% Senior Notes due 2039 $2,000
Other $295
Total long-term debt……… $10,295
You can read full details on the Cisco filing here.
Jon C. Ogg
November 9, 2009
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