Intel Initiates $10 Billion Accelerated Share Repurchase Agreements
August 19 2020 - 5:31PM
Business Wire
Intel Corporation today announced it is entering into
accelerated share repurchase (ASR) agreements to repurchase an
aggregate of $10 billion of Intel’s common stock. Following
completion of these agreements, Intel will have repurchased a total
of approximately $17.6 billion in shares as part of the planned $20
billion share repurchases announced in October 2019.
“We achieved record financial results in the first half of 2020
and raised our full-year outlook as customers rely on Intel
technology for delivering critical services and enabling people to
work, learn and stay connected. As the ongoing growth of data fuels
demand for Intel products to process, move and store, we are
confident in our multiyear plan to deliver leadership products,”
said Intel CEO Bob Swan. “While the macro-economic environment
remains uncertain, Intel shares are currently trading well below
our intrinsic valuation, and we believe these repurchases are
prudent at this time.”
Under the terms of the ASR agreements, Intel will receive an
initial share delivery of approximately 166 million shares, with
the final settlement scheduled to occur by the end of 2020. The
final number of shares to be repurchased by Intel will be based on
the volume-weighted average stock price of Intel’s common stock
during the term of the agreements, less a discount and subject to
adjustments.
Intel is funding the share repurchases under the ASR agreements
with existing cash resources. Strong operating results in the first
half of 2020 have contributed to a healthy liquidity balance, which
gives Intel the ability to invest in the business during a period
of economic uncertainty while also returning capital to
stockholders through dividends and these share repurchases. Intel
intends to complete the $2.4 billion balance of its planned $20
billion share repurchases and return to its historical capital
return practices when markets stabilize.
BNP Paribas Securities Corp. acted as sole structuring adviser
to Intel on the ASR agreements.
Forward Looking Statements
Statements in this press release that refer to future plans and
expectations, including with respect to the ASR agreements, the
settlement of such agreements, Intel’s share repurchases, and
Intel’s business outlook, are forward-looking statements that
involve a number of risks and uncertainties. Words such as
“anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,”
“seeks,” “estimates,” “continues,” “may,” “will,” “would,”
“should,” “could,” and variations of such words and similar
expressions are intended to identify such forward-looking
statements. Statements that refer to or are based on estimates,
forecasts, projections, uncertain events or assumptions, including
statements relating to future products and technology and the
expected availability and benefits of such products and technology,
market opportunity, our valuation, our ability to invest and return
capital, and anticipated trends in our businesses or the markets
relevant to them, also identify forward-looking statements. Such
statements are based on management's current expectations and
involve many risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in
these forward-looking statements. Important factors that could
cause actual results to differ materially from the company's
expectations include, among others, the ability of a counterparty
to an ASR agreement to buy or borrow shares of Intel common stock;
the market price of Intel common stock during the term of an ASR
Agreement; the impact of global and regional economic and market
conditions, including illiquidity and other risks of instability in
the banking and financial services industry; and the factors set
forth in Intel's earnings release dated July 23, 2020, which is
included as an exhibit to Intel’s Form 8-K furnished to the SEC on
such date, and Intel's SEC filings, including the company's most
recent reports on Forms 10-K and 10-Q. Copies of Intel's Form 10-K,
10-Q and 8-K reports may be obtained by visiting our Investor
Relations website at www.intc.com or the SEC's website at
www.sec.gov. Intel does not undertake, and expressly disclaims any
duty, to update any statement made in this press release, whether
as a result of new information, new developments or otherwise,
except to the extent that disclosure may be required by law.
About Intel
Intel (Nasdaq: INTC), is an industry leader, creating
world-changing technology that enables global progress and enriches
lives. Inspired by Moore’s Law, we continuously work to advance the
design and manufacturing of semiconductors to help address our
customers’ greatest challenges. By embedding intelligence in the
cloud, network, edge and every kind of computing device, we unleash
the potential of data to transform business and society for the
better. To learn more about Intel’s innovations, go to
newsroom.intel.com and intel.com.
© Intel Corporation. Intel, the Intel logo, and other Intel
marks are trademarks of Intel Corporation or its subsidiaries.
Other names and brands may be claimed as the property of
others.
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Ben Thom Investor Relations +1 (503) 613-1490
ben.thom@intel.com
Cara Walker Media Relations +1 (503) 696-0831
cara.walker@intel.com
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