Intel has sold $2.75bn worth of bonds to refinance existing debt and a portion of notes that are due to mature in 2017.
The chipmaker announced a three-part benchmark US dollar bond, targeting five, 10 and 30-year maturities. The largest part was $1.25bn of 30-year notes yielding 1.55 percentage points above comparable government debt.
Citing a person familiar with the matter, Bloomberg reported that it is down from an initial offer of 1.7 percentage points.
The sale has been managed by Bank of America and JPMorgan Chase & Co.
The news agency noted that Credisights analysts Erin Lyons and Peter Boozan maintained their equivalent of a hold recommendation on Intel’s debt in a client note.
Investors searching for stable A-rated core holdings have been recommended to purchase the bonds.
Lyons and Boozan wrote, "Intel is one of the best-run semiconductor companies, and we like that management has maintained a conservative financial profile.
"We believe the bonds are priced fairly and we do not expect to see meaningful price appreciation."
Intel sold $7bn of bonds in July to finance part of its $16.7bn acquisition of Altera.
The company plans to repay its $1.5bn of 1.95 percent notes due in October and a part of the $3bn of 1.35 percent bonds due next year.
The acquisition aims to strengthen Intel’s market for higher-margin chips used in data centres and to develop chips for cars, watches and other devices based on the Internet of Things.
It was reported in March this year that Intel is planning to sell $1bn worth of assets of its venture capital unit.
The assets include interests in companies across the world, and Intel is reportedly open to divest the assets as a whole or divided by geography or sector.
Intel is shifting its focus to cloud in order to address the decline in the personal-computer market and its failure to capitalise on the switch to smartphones.
As part of its changing focus, the company is planning to cut 12,000 jobs, which equates to 11% of its workforce.
The company hopes to save $750m this year, with annual run-rate savings of $1.4bn by mid-2017.
