Keysight Technologies (KEYS, Financial) has announced the issuance of $600 million in aggregate principal amount of its 4.950% Notes due 2034. This strategic financial maneuver is part of the company's broader plan to refinance its existing debt and support ongoing corporate initiatives. The notes were issued under Keysight's effective shelf registration statement and sold through an underwriting agreement with BNP Paribas Securities Corp., Citigroup Global Markets Inc., and BofA Securities, Inc.
The newly issued notes are set to mature on October 15, 2034, with interest accruing at an annual rate of 4.950%. Interest payments will be made semi-annually, starting on April 15, 2025. The proceeds from this issuance are earmarked for general corporate purposes, including the repayment of $600 million of 4.550% Senior Notes due on October 30, 2024.
These notes are unsecured and unsubordinated obligations of Keysight Technologies, ranking equally with all existing and future unsecured and unsubordinated obligations. The company retains the option to redeem the notes, in whole or in part, at any time, with specific conditions applied to the redemption price depending on the timing relative to the maturity date.
In the event of a change of control, Keysight is obligated to offer to repurchase the notes at 101% of their principal amount, plus accrued interest. The indenture governing the notes includes customary covenants and events of default, providing a structured framework for the company's financial operations.
This issuance reflects Keysight Technologies' proactive approach to managing its financial obligations and supporting its strategic growth objectives. Investors and stakeholders will be closely monitoring how this move impacts the company's financial health and market position in the coming years.
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