Qualcomm offers $4 billion of bonds in five tranches due through 2036
Key Facts
Qualcomm offered bonds with an aggregate principal amount of $4 billion across five tranches due between 2028 and 2036, in an issuance whose proceeds the company said would be used mainly to repay outstanding bonds due in 2027. The bonds were priced on November 9 and were expected to be delivered and settled on November 12, 2026, according to the prospectus filed with the U.S. Securities and Exchange Commission. The company estimated net proceeds at about $3.98 billion after deducting offering expenses and underwriting discounts. Using part of the proceeds refinances an obligation due next year, while the new tranches extend as far as 2036. Qualcomm will pay interest on the new bonds twice a year, on May 20 and November 20, beginning May 20, 2027.
The tranches comprise $750 million due in 2028 with an annual interest rate of 5.000%, $750 million due in 2029 at 5.150%, and $1 billion due in 2031 at 5.350%. The other two tranches are each worth $750 million: the first is due in 2033 with an annual interest rate of 5.600%, and the second in 2036 at 5.800%. The transaction therefore includes four tranches of $750 million each, alongside the larger tranche due in 2031. Pricing terms show that the issuer’s total gross proceeds were $3,995,715,000. The bonds were rated A2 stable by Moody’s and A stable by S&P, according to the pricing terms table.
Qualcomm said in the prospectus that it plans to repay in full its fixed-rate notes due May 20, 2027, with an original principal amount of $2 billion and an annual interest rate of 3.250%. The estimated net proceeds of $3.98 billion cover this specified repayment, with the remainder going to general corporate purposes. The prospectus said those purposes may include repaying commercial paper, funding working capital and making acquisitions. The company did not list share repurchases among the specified uses of proceeds in the prospectus. Interest on the new bonds also begins before the maturity date of the debt the company intends to repay, according to the payment schedule in the offering terms.
The issuance comes as Qualcomm had $7.681 billion in cash and cash equivalents and marketable securities, including restricted cash, on September 27, 2026, against debt of $15.112 billion. On the same date, the company said the principal amount of its outstanding fixed-rate notes was $15.1 billion, including $2 billion due in 2027. This sets the scale of the obligation the offering proceeds are intended to cover within its existing debt structure. In terms of cash flow, net cash generated by operating activities was $11.145 billion in fiscal 2026, compared with $14.012 billion in fiscal 2025. The company’s generally accepted accounting principles revenue fell 8% year over year in the fourth quarter of fiscal 2026, to $10.322 billion from $11.270 billion in the corresponding period.
Qualcomm shares closed at $177.14 in the November 12, 2026, session, according to EL7 data. The closing price came on the bonds’ expected settlement date, but the closing price alone does not determine the offering’s effect on the stock’s movement during the session. In its fiscal 2026 results, Chief Executive Cristiano Amon said revenue from non-handset activities is expected to grow by more than 60% year over year in fiscal 2027. Amon also reaffirmed the company’s $5 billion data center revenue target for fiscal 2027. These targets remain part of the company’s outlook for the coming fiscal year, alongside the new financing maturities extending through 2036.