Stock Update (NASDAQ:CSCO): Cisco Systems, Inc. Prices $5 Billion of Senior Unsecured Notes


Cisco Systems, Inc. (NASDAQ:CSCO) announced the pricing of five series of senior unsecured notes for an aggregate principal amount of $5 billion. The offering is expected to close on June 17, 2015, subject to customary closing conditions.

Of these notes, $900 million will mature in June 2018 and will bear interest at a floating rate equal to three-month LIBOR plus 31 basis points, $1.6 billion will mature in June 2018 and will bear interest at an annual rate of 1.650%, $1.5 billionwill mature in June 2020 and will bear interest at an annual rate of 2.450%, $500 million will mature in June 2022 and will bear interest at an annual rate of 3.000% and $500 million will mature in June 2025 and will bear interest at an annual rate of 3.500%.

Cisco intends to use the net proceeds from this offering for general corporate purposes, including to return capital to shareholders pursuant to its previously-announced capital allocation strategy through the repurchase of shares of its common stock and the payment of cash dividends. (Original Source)

Shares of Cisco closed yesterday at $28.73, up $0.49 or 1.74%. CSCO has a 1-year high of $30.31 and a 1-year low of $22.49. The stock’s 50-day moving average is $29.06 and its 200-day moving average is $28.07.

On the ratings front, Cisco has been the subject of a number of recent research reports. In a report released yesterday, Oppenheimer analyst Ittai Kidron reiterated a Buy rating on CSCO, with a price target of $32, which implies an upside of 11.7% from current levels. Separately, on the same day, Cantor Fitzgerald’s Brian White reiterated a Buy rating on the stock and has a price target of $36.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ittai Kidron and Brian White have a total average return of 2.9% and 18.0% respectively. Kidron has a success rate of 52.4% and is ranked #1078 out of 3619 analysts, while White has a success rate of 71.1% and is ranked #22.

Overall, 4 research analysts have assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $32.65 which is 13.9% above where the stock closed yesterday.