CHIPMAKER Intel will sell bonds to generate cash in order to buy back some of its own stock.
Intel announced that it will offer unsecured notes to investors in order to generate cash in order to buy back its own shares. The firm has enlisted JP Morgan and Merrill Lynch to handle the bond sale.
According to Intel the cash it generates will not only be used to buy back stock but also for 'general corporate purposes'. Intel has been running a stock buy-back program for a number of years and given that the firm's stock price has barely moved in over a decade, it is one way of pleasing investors.
Given Intel's three year process node lifecycle, the firm has to spend tens of billions building fabs in order to keep its competitive advantage over other chip vendors. While the firm said the funds generated by the bond issue will be used for general corporate purposes, the bond sale should free up some cash for investment in research and development of manufacturing processes.
Intel did not say how much the minimum investment for these bonds will be nor the interest or maturity. According to the firm, those factors will depend on the market and other conditions at the time of pricing. µ
Nothing to see here, apparently
Oh and by the way, it's a hundred quid from July
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