Broadcom launches $2.5B cash tender for notes
Broadcom Inc. has launched cash tender offers to purchase several series of its outstanding senior notes for up to an aggregate purchase price of $2.5 billion, excluding accrued interest, called the Consideration Cap Amount.
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Form Type
8-K
Rhea-AI Filing Summary
Broadcom Inc. has launched cash tender offers to purchase several series of its outstanding senior notes for up to an aggregate purchase price of $2.5 billion, excluding accrued interest, called the Consideration Cap Amount. The offers cover 4.926% notes due 2037, 4.900% notes due 2038, 5.050% notes due 2030, 5.200% notes due 2032, 5.150% notes due 2031 and 4.900% notes due 2032.
Pricing for each series will be set using a fixed spread over specified U.S. Treasury reference securities based on yields at 11:00 a.m. New York City time on June 17, 2026. The offers are scheduled to expire at 5:00 p.m. New York City time on that date, with initial settlement expected on June 18, 2026 and guaranteed delivery settlement on June 23, 2026, subject to customary conditions.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Consideration Cap Amount: $2.5 billion aggregate purchase price
4.926% Notes 2037 outstanding: $2,500,000,000 principal
4.900% Notes 2038 outstanding: $1,750,000,000 principal
+5 more
8 metrics
Consideration Cap Amount
$2.5 billion aggregate purchase price
Maximum cash tender consideration, excluding accrued interest
4.926% Notes 2037 outstanding
$2,500,000,000 principal
4.926% Senior Notes due 2037, Acceptance Priority Level 1
4.900% Notes 2038 outstanding
$1,750,000,000 principal
4.900% Senior Notes due 2038, Acceptance Priority Level 2
5.050% Notes 2030 outstanding
$800,000,000 principal
5.050% Senior Notes due 2030, Acceptance Priority Level 3
5.200% Notes 2032 outstanding
$1,100,000,000 principal
5.200% Senior Notes due 2032, Acceptance Priority Level 4
5.150% Notes 2031 outstanding
$1,500,000,000 principal
5.150% Senior Notes due 2031, Acceptance Priority Level 5
4.900% Notes 2032 outstanding
$1,750,000,000 principal
4.900% Senior Notes due 2032, Acceptance Priority Level 6
Offer expiration
5:00 p.m. NYT, June 17, 2026
Expiration Date of the cash tender offers
Key Terms
cash tender offers, Consideration Cap Amount, Acceptance Priority Level, Accrued Coupon Payment, +2 more
6 terms
cash tender offers financial
"announced that it has commenced cash tender offers (collectively, the “Offers”) to purchase"
A cash tender offer is when a company or investor offers to buy shares directly from shareholders for cash, usually at a price higher than the current market value. It’s a way to quickly acquire a large number of shares, often to gain control of a company or influence its decisions.
Consideration Cap Amount financial
"for the consideration described below, up to an aggregate purchase price... of $2.5 billion (the “Consideration Cap Amount”)"
A consideration cap amount is the maximum dollar value set in a deal that limits what will be paid or used to calculate payment when shares, notes, or other securities convert or are issued. Think of it like a price ceiling on a receipt: no matter how high the underlying value rises, the payment or conversion will be calculated as if the value were no higher than the cap. Investors care because the cap directly affects how many shares they receive or how much cash changes hands, which influences ownership percentages and potential returns.
Acceptance Priority Level financial
"Aggregate Principal Amount Outstanding | | | Acceptance Priority Level | | Par Call Date"
Accrued Coupon Payment financial
"up to an aggregate purchase price, excluding the Accrued Coupon Payment, of $2.5 billion"
An accrued coupon payment is the interest earned on a bond that has accumulated since the last payment date but has not yet been paid to the investor. Think of it like interest building up in a savings account that will be paid out later; it reflects the amount the investor is owed for holding the bond during that period. This figure matters because it helps accurately determine the bond’s current value and the investor’s true earnings.
Par Call Date financial
"Acceptance Priority Level | | Par Call Date | | Maturity Date"
The par call date is the specific time when a company can choose to pay back a bond or debt in full at its original value, known as the face amount or par value. It matters to investors because it indicates when the issuer might repay the debt early, potentially affecting investment plans or expected income. Think of it like a fixed date when a loan can be fully settled, giving investors clarity on when they might get their money back.
Reference Security financial
"Reference Security | | Bloomberg Reference Page | | Fixed Spread (Basis Points)"
A reference security is a specific financial asset, such as a bond or stock, used as a standard for measuring or comparing the value of other related investments. It acts like a benchmark or point of reference, helping investors assess how well other assets are performing relative to a known standard. This makes it easier to understand the value and risk of different investments in relation to one another.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Broadcom (AVGO) announce in this 8-K filing?
Broadcom announced cash tender offers to purchase several series of its outstanding senior notes for up to $2.5 billion in aggregate consideration, excluding accrued interest, under terms described in an Offer to Purchase dated June 11, 2026.
How large is Broadcom’s new debt tender offer program?
The tender offers cover an aggregate purchase price up to $2.5 billion, excluding accrued interest, across multiple series of senior notes. This cap, called the Consideration Cap Amount, limits the total cash Broadcom will use to repurchase its outstanding debt securities.
Which Broadcom (AVGO) notes are targeted in the cash tender offers?
The offers target six series of senior notes: 4.926% due 2037, 4.900% due 2038, 5.050% due 2030, 5.200% due 2032, 5.150% due 2031, and 4.900% due 2032, each with specified acceptance priority levels and reference Treasury securities.
When do Broadcom’s tender offers for its notes expire?
The offers are scheduled to expire at 5:00 p.m., New York City time, on June 17, 2026. An initial settlement date is expected on June 18, 2026, subject to conditions described in the Offer to Purchase.
How will Broadcom determine the price paid for each series of notes?
Total consideration per $1,000 principal amount will be based on each series’ maturity or par call date, its fixed spread, and the reference yield of a specified U.S. Treasury security measured at 11:00 a.m. New York City time on June 17, 2026.
Are Broadcom’s tender offers subject to any conditions or financing requirements?
The offers are subject to conditions described in the Offer to Purchase, including a consideration cap, but are not subject to any financing condition or aggregate minimum tender amount. Broadcom may delay, alter, or terminate the offers if conditions are not met.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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