Intel Initiates $10 Billion Accelerated Share Repurchase Agreements

Intel Company right now announced it is getting into into accelerated share repurchase (ASR) agreements to repurchase an mixture of $10 billion of Intel’s frequent inventory. Following completion of these agreements, Intel will have repurchased a full of about $17.6 billion in shares as part of the prepared $20 billion share repurchases introduced in October 2019.

“We attained record economical outcomes in the first 50 % of 2020 and elevated our full-12 months outlook as customers depend on Intel technologies for providing essential services and enabling people to operate, study and keep linked. As the ongoing development of details fuels need for Intel goods to method, go and store, we are self-assured in our multiyear strategy to provide leadership items,” said Intel CEO Bob Swan. “Even though the macro-financial surroundings remains uncertain, Intel shares are presently trading properly down below our intrinsic valuation, and we feel these repurchases are prudent at this time.”

Below the conditions of the ASR agreements, Intel will acquire an initial share supply of roughly 166 million shares, with the remaining settlement scheduled to take place by the close of 2020. The ultimate variety of shares to be repurchased by Intel will be based on the quantity-weighted regular stock price tag of Intel’s prevalent inventory all through the expression of the agreements, less a discount and subject to changes.

Intel is funding the share repurchases less than the ASR agreements with current income methods. Potent functioning success in the 1st 50 % of 2020 have contributed to a healthful liquidity balance, which presents Intel the ability to devote in the enterprise through a interval of financial uncertainty whilst also returning cash to stockholders via dividends and these share repurchases. Intel intends to full the $2.4 billion stability of its prepared $20 billion share repurchases and return to its historical money return tactics when markets stabilize.

BNP Paribas Securities Corp. acted as sole structuring adviser to Intel on the ASR agreements.

Forward Seeking Statements

Statements in this push launch that refer to upcoming options and anticipations, which include with respect to the ASR agreements, the settlement of these agreements, Intel’s share repurchases, and Intel’s company outlook, are ahead-searching statements that contain a selection of risks and uncertainties. Words this kind of as “anticipates,” “expects,” “intends,” “objectives,” “programs,” “thinks,” “seeks,” “estimates,” “continues,” “may perhaps,” “will,” “would,” “really should,” “could,” and variations of these kinds of words and similar expressions are meant to recognize these types of forward-searching statements. Statements that refer to or are based on estimates, forecasts, projections, unsure gatherings or assumptions, including statements relating to long run solutions and technological innovation and the predicted availability and gains of this sort of merchandise and technologies, market place possibility, our valuation, our skill to commit and return capital, and expected developments in our corporations or the marketplaces applicable to them, also detect ahead-looking statements. These statements are dependent on management’s present expectations and include many pitfalls and uncertainties that could cause actual success to vary materially from those expressed or implied in these forward-searching statements. Crucial variables that could lead to actual benefits to vary materially from the company’s expectations consist of, amongst others, the skill of a counterparty to an ASR arrangement to acquire or borrow shares of Intel popular inventory the market rate of Intel widespread inventory during the term of an ASR Settlement the influence of world and regional financial and industry conditions, which includes illiquidity and other risks of instability in the banking and money services marketplace and the components set forth in Intel’s earnings launch dated July 23, 2020, which is included as an exhibit to Intel’s Form 8-K furnished to the SEC on these types of day, and Intel’s SEC filings, together with the company’s most new experiences on Forms 10-K and 10-Q. Copies of Intel’s Type 10-K, 10-Q and 8-K reviews might be acquired by browsing our Trader Relations web-site at www.intc.com or the SEC’s web page at www.sec.gov. Intel does not undertake, and expressly disclaims any responsibility, to update any assertion produced in this push launch, irrespective of whether as a end result of new data, new developments or usually, except to the extent that disclosure might be necessary by law.

Tale carries on