Adobe prices $1.5 billion in debt in refinancing plan
By APMonday, January 25, 2010
Adobe prices $1.5 billion in debt
SAN JOSE, Calif. — Adobe Systems Inc., a software company best known for its Adobe Reader and the PDF document format, said Monday it priced $1.5 billion in new notes, most of which will go to paying down its existing debt.
The notes are to be issued in two batches: $600 million with a 3.25 percent interest rate maturing in February 2015, and $900 million with a 4.75 percent interest rate maturing in February 2020.
Adobe said it intends to use the net proceeds of the sale to repay $1 billion outstanding on its credit facility and use the rest for general corporate purposes.
The offering is expected to close Feb. 1.
Adobe shares closed down 22 cents at $34.16 on Monday and slipped another 81 cents to $33.35 in after-market dealings.
