Gen Announces Pricing of $950,000,000 of Senior Notes
Gen Digital (NASDAQ: GEN) has announced the pricing of $950 million in senior notes with a 6.25% interest rate, due in 2033. The private offering, scheduled to close on February 13, 2025, is exempt from Securities Act registration requirements. The company plans to use the proceeds, along with available cash, to repurchase all outstanding 5.00% Senior Notes due 2025.
The notes are exclusively offered to qualified institutional buyers under Rule 144A and non-U.S. investors under Regulation S. They will not be registered under the Securities Act or state securities laws, limiting their sale and offer within the United States to qualified exemptions.
Gen Digital (NASDAQ: GEN) ha annunciato la determinazione del prezzo di 950 milioni di dollari in note senior con un tasso d'interesse del 6,25%, in scadenza nel 2033. L'offerta privata, prevista per chiudere il 13 febbraio 2025, è esente dai requisiti di registrazione della Securities Act. L'azienda prevede di utilizzare i proventi, insieme alla liquidità disponibile, per riacquistare tutte le note senior al 5,00% in scadenza nel 2025.
Le note sono offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a investitori non statunitensi ai sensi della Regolamentazione S. Non saranno registrate ai sensi della Securities Act o delle leggi statali sui titoli, limitando la loro vendita e offerta negli Stati Uniti a esenzioni qualificate.
Gen Digital (NASDAQ: GEN) ha anunciado el precio de 950 millones de dólares en notas senior con una tasa de interés del 6,25%, que vencen en 2033. La oferta privada, programada para cerrarse el 13 de febrero de 2025, está exenta de los requisitos de registro de la Ley de Valores. La compañía planea utilizar los ingresos, junto con el efectivo disponible, para recomprar todas las notas senior al 5,00% que vencen en 2025.
Las notas se ofrecen exclusivamente a compradores institucionales calificados bajo la Regla 144A y a inversores no estadounidenses bajo la Regulación S. No se registrarán bajo la Ley de Valores ni las leyes estatales de valores, limitando su venta y oferta dentro de los Estados Unidos a exenciones calificadas.
Gen Digital (NASDAQ: GEN)은 9억 5천만 달러의 고급 채권을 6.25%의 이자율로 발행한다고 발표했습니다. 만기는 2033년입니다. 2025년 2월 13일에 마감될 예정인 이 사모 발행은 증권법 등록 요건에서 면제됩니다. 회사는 수익금을 사용하여 사용 가능한 현금과 함께 모든 2025년 만기 5.00% 고급 채권을 재매입할 계획입니다.
채권은 규칙 144A에 따라 자격을 갖춘 기관 투자자와 규정 S에 따른 비미국 투자자에게만 독점적으로 제공됩니다. 이들은 증권법 또는 주 증권법에 따라 등록되지 않으며, 미국 내에서 자격 있는 면제 사항에 한해 판매 및 제공이 제한됩니다.
Gen Digital (NASDAQ: GEN) a annoncé le prix de 950 millions de dollars en obligations senior avec un taux d'intérêt de 6,25%, arrivant à échéance en 2033. L'offre privée, prévue pour se clôturer le 13 février 2025, est exemptée des exigences d'enregistrement de la Loi sur les valeurs mobilières. La société prévoit d'utiliser les produits, avec les liquidités disponibles, pour racheter toutes les obligations senior à 5,00% arrivant à échéance en 2025.
Les obligations sont exclusivement offertes à des acheteurs institutionnels qualifiés en vertu de la règle 144A et à des investisseurs non américains en vertu de la réglementation S. Elles ne seront pas enregistrées en vertu de la Loi sur les valeurs mobilières ou des lois étatiques sur les valeurs mobilières, limitant ainsi leur vente et leur offre aux États-Unis à des exemptions qualifiées.
Gen Digital (NASDAQ: GEN) hat die Preisgestaltung von 950 Millionen Dollar in vorrangigen Anleihen mit einem Zinssatz von 6,25%, fällig im Jahr 2033, bekannt gegeben. Das private Angebot, das am 13. Februar 2025 abgeschlossen werden soll, ist von den Registrierungsanforderungen des Wertpapiergesetzes ausgenommen. Das Unternehmen plant, die Erlöse zusammen mit verfügbaren Mitteln zu verwenden, um alle ausstehenden 5,00% vorrangigen Anleihen fällig 2025 zurückzukaufen.
Die Anleihen werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an nicht-US-Investoren gemäß Regulation S angeboten. Sie werden nicht unter dem Wertpapiergesetz oder den staatlichen Wertpapiergesetzen registriert, was den Verkauf und das Angebot innerhalb der Vereinigten Staaten auf qualifizierte Ausnahmen beschränkt.
- Successful pricing of $950M senior notes offering
- Strategic refinancing of existing debt obligations
- Extended debt maturity from 2025 to 2033
- Higher interest rate on new notes (6.25%) compared to existing notes (5.00%)
- Increased interest expense will affect future cash flows
Insights
Gen Digital's $950M senior notes offering represents a significant debt restructuring that merits careful analysis. The new 6.25% notes due 2033 will replace the existing 5.00% notes due 2025, resulting in an annual interest expense increase of approximately
The timing of this refinancing is particularly noteworthy. Rather than waiting until closer to the 2025 maturity date, Gen Digital is proactively managing its debt structure. This early refinancing, despite the higher rate, suggests management's desire to eliminate near-term refinancing risk and lock in rates before any potential market volatility. The extension of maturity provides enhanced financial flexibility and reduces refinancing risk during a period when interest rates remain elevated.
From a balance sheet perspective, this transaction is leverage-neutral as it's essentially replacing existing debt. However, the increased interest expense will have a modest impact on free cash flow. For a company with a market cap of
The private placement nature of the offering, restricted to qualified institutional buyers, typically allows for more efficient execution and potentially more favorable terms compared to a public offering. The strong interest from institutional investors, despite the higher rate, indicates confidence in Gen Digital's credit profile and long-term business prospects.
The offering of the Notes is expected to close on February 13, 2025, subject to customary closing conditions. We intend to use the net proceeds of this Notes Offering, together with cash on hand, to repurchase all of our outstanding
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release also shall not constitute an offer to purchase, a solicitation of an offer to sell, or notice of redemption with respect to the 2025 Notes. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About Gen
Gen™ (NASDAQ: GEN) is a global company dedicated to powering Digital Freedom through its trusted Cyber Safety brands, Norton, Avast, LifeLock, Avira, AVG, ReputationDefender and CCleaner. The Gen family of consumer brands is rooted in providing safety for the first digital generations. Now, Gen empowers people to live their digital lives safely, privately, and confidently today and for generations to come. Gen brings award-winning products and services in cybersecurity, online privacy and identity protection to nearly 500 million users in more than 150 countries. Learn more at GenDigital.com.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements, which are subject to safe harbors under the Exchange Act of 1934, as amended. Forward-looking statements include statements that represent our expectations or beliefs concerning future events, including, without limitation, references to our ability to utilize our deferred tax assets, as well as statements including words such as "expects," "plans," "anticipates," "believes," "estimates," "predicts," "goal," "intent," "momentum," "projects," "forecast," "outlook," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," and similar expressions. In addition, projections of our future financial performance, anticipated growth and trends in our businesses and in our industries, the consummation of or anticipated impacts of acquisitions, divestitures, restructurings, stock repurchases, financings, debt repayments and investment activities, the outcome or impact of pending litigation, claims or disputes, our intent to pay quarterly cash dividends in the future, plans for and anticipated benefits of our products and solutions, anticipated tax rates, benefits and expenses, the impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates, ongoing and new geopolitical conflicts, and other global macroeconomic factors on our operations and financial performance, the expected impact of our new strategy and other characterizations of future events or circumstances are forward-looking statements. These statements are only predictions, based on our current expectations about future events and may not prove to be accurate. We do not undertake any obligation to update these forward-looking statements to reflect events occurring or circumstances arising after the date of this press release.
Investor Relations & Media Contact
Jason Starr
Gen
IR@GenDigital.com
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SOURCE Gen Digital Inc.
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