Stock Update (NASDAQ:CSCO): Cisco Systems, Inc. Prices $6.25 Billion of Senior Unsecured Notes


Cisco Systems, Inc. (NASDAQ:CSCO) announced the pricing of five series of senior unsecured notes in an aggregate principal amount of $6.25 billion. The offering is expected to close on September 20, 2016, subject to customary closing conditions.

Of these notes, $500 million will mature in September 2019 and will bear interest at a floating rate equal to three-month LIBOR plus 34 basis points, $1.5 billion will mature in September 2019 and will bear interest at an annual rate of 1.400%,$2 billion will mature in September 2021 and will bear interest at an annual rate of 1.850%, $750 million will mature inSeptember 2023 and will bear interest at an annual rate of 2.200% and $1.5 billion will mature in September 2026 and will bear interest at an annual rate of 2.500%.

Cisco intends to use the net proceeds from this offering for general corporate purposes, which may include repurchases of its common stock, repayment of debt, including the repayment of previously issued senior unsecured notes, acquisitions, investments, additions to working capital, capital expenditures, cash dividends and advances to or investments in its subsidiaries. (Original Source)

Shares of Cisco closed yesterday at $31.06, down $0.38 or -1.21%. CSCO has a 1-year high of $31.95 and a 1-year low of $22.46. The stock’s 50-day moving average is $31.06 and its 200-day moving average is $28.72.

On the ratings front, CSCO stock has been the subject of a number of recent research reports. In a report issued on September 12, UBS analyst Steven Milunovich maintained a Buy rating on CSCO, with a price target of $35, which implies an upside of 13% from current levels. Separately, on September 6, MKM Partners’ Michael Genovese maintained a Hold rating on the stock and has a price target of $32.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Steven Milunovich and Michael Genovese have a total average return of 1.0% and 10.3% respectively. Milunovich has a success rate of 49% and is ranked #1654 out of 4163 analysts, while Genovese has a success rate of 54% and is ranked #298.

Overall, one research analyst has rated the stock with a Sell rating, 8 research analysts have assigned a Hold rating and 16 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 $33.33 which is 7.3% above where the stock closed yesterday.