Broadcom announces $5 billion senior notes offering and redemption of 2027 notes

Broadcom Inc. (NASDAQ:AVGO), a prominent semiconductor company with a market capitalization of $1.55 trillion and impressive gross profit margins of 77%, disclosed Monday that it has entered into an agreement to issue and sell $5 billion in aggregate principal amount of senior notes. According to InvestingPro analysis, the company maintains a moderate debt level while demonstrating great financial health. The offering includes $1 billion of 4.200% senior notes due 2030, $2.25 billion of 4.800% senior notes due 2036, and $1.75 billion of 4.900% senior notes due 2038. The underwriting agreement was executed with J.P. Morgan Securities LLC, BofA Securities, Inc., and BNP Paribas Securities Corp., acting as representatives for the underwriters.

The senior notes are unsecured and unsubordinated obligations of Broadcom and are not guaranteed by the company’s subsidiaries. The notes were registered under the Securities Act of 1933, as amended, and issued pursuant to a previously filed registration statement and prospectus supplement.

Broadcom also announced that on September 23, its subsidiaries provided notice to holders of three series of outstanding notes that these would be fully redeemed. The notes to be redeemed include $2,922,282,000 of 3.875% Senior Notes due 2027, $215,416,000 of 4.700% Senior Notes due 2027, and $500,000,000 of 4.650% Senior Notes due 2027. The redemptions are scheduled for October 3 and October 23, 2025, depending on the note series.

Each series of the redeemed notes will be repurchased at 100% of the principal amount, plus a premium based on the present value of remaining scheduled payments of principal and interest, discounted to the redemption date at the applicable Treasury Rate plus a specified number of basis points, along with accrued and unpaid interest up to, but excluding, the redemption date.

This information is based on a press release statement included in Broadcom’s filing with the U.S. Securities and Exchange Commission.

In other recent news, Broadcom Inc. has received a series of credit rating upgrades from major agencies, reflecting confidence in its financial stability and growth prospects. Fitch Ratings upgraded Broadcom to ’BBB+’ with a positive outlook, citing the company’s strong cash flow and successful integration of VMware Inc. Moody’s Ratings also improved Broadcom’s senior unsecured rating to A3, highlighting the company’s growing revenues from artificial intelligence semiconductors. Similarly, S&P Global Ratings elevated Broadcom to ’A-’, emphasizing the company’s significant growth in AI semiconductor sales, which now account for 57% of its total semiconductor sales in the third quarter of 2025.

Additionally, Broadcom has strengthened its partnership with Lloyds Banking Group through a multi-year agreement to enhance the bank’s technology infrastructure using VMware Cloud Foundation. This expanded collaboration aims to support Lloyds’ data center consolidation strategy and utilize Broadcom’s mainframe solutions for critical workloads. Meanwhile, the semiconductor industry faces challenges as China initiates investigations into the US chip sector, affecting companies focused on automotive and industrial markets. Despite these broader industry concerns, Broadcom’s recent developments indicate a strong position in the AI semiconductor market.

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