Intel Corporation (NASDAQ:INTC) has just announced plans to repurchase its common stock by selling bonds. The bonds will be sold in a three-part offering.
Bloomberg cites an anonymous source, who said that Intel Corporation (NASDAQ:INTC) will issue the securities with maturities of 5, 10, and 30 years. According to a regulatory document filed today, the proceeds from the sale of those securities will go toward corporate purposes and stock buybacks, which have been previously announced.
Trace, the Financial Industry Regulatory Authority’s bond price reporting system, shows that the securities sold by Intel Corporation (NASDAQ:INTC) last year were trading at $1.12 per dollar at the end of November. That collection of securities will mature in October 2041. Bloomberg’s source apparently said that this new round of bonds from Intel Corporation (NASDAQ:INTC) could receive an A+ rating from Standard & Poor’s and an A1 rating from Moody’s Investor Service.
This year so far Intel’s stock has dropped 15 percent. Last month it reached its lowest point since August of last year with trades at $19.36.
Intel Corporation (NASDAQ:INTC) has certainly hit a rough patch in recent years, and industry analysts have said it could be left behind in the race for mobile technology. Microsoft Corporation (NASDAQ:MSFT) and Intel teamed up for Microsoft’s new Windows 8 tablets, and so far, only eight of the more than 12 different tablets they are offering can be purchased and delivered right away. In addition, analysts are calling demand for the new Windows 8 tablets disappointing.
However, Intel Corporation (NASDAQ:INTC) is making strides toward better mobile offerings. ValueWalk reported on Monday that the company is working to make its current Ivy Bridge chip more efficient, so that it would be better suited to be used in tablets. The updated version of the Ivy Bridge chip is expected to be out before Intel’s next generation chip, the Haswell, which is expected to be out sometime in the middle of next year.