Intel 1999 Annual Report Download - page 38

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The company has guaranteed repayment of principal and interest on bonds issued by the Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Financing Authority. The bonds are adjustable and redeemable at the option of either the company or the
bondholder every five years through 2013 and are next adjustable and redeemable in 2003.
During 1999, the company assumed 4% convertible subordinated notes with a principal amount of $115 million as a result of the Level One
Communications, Inc. acquisition (see "Acquisitions"). The value assigned to the notes was approximately $212 million, based upon the
assumed conversion price at the date of acquisition. Amortization of the premium substantially offsets the interest expense on the notes. The
notes are convertible into common stock of the company at a conversion price of $31.01 per share. After September 2000, the notes are
redeemable at the option of the company.
The Irish punt borrowings were made in connection with the financing of manufacturing facilities in Ireland, and Intel has invested the
proceeds in Irish punt denominated instruments of similar maturity to hedge foreign currency and interest rate exposures.
Under shelf registration statements filed with the Securities and Exchange Commission, Intel may issue up to $1.4 billion of additional
securities in the form of common stock, preferred
Page 20
Payable in U.S. dollars:
Puerto Rico bonds due 2013 at 3.9%-4.25% $110 $110
Convertible subordinated notes due 2004 at 4% 210 -
Other U.S. dollar debt 6 5
Payable in other currencies:
Irish punt due 2001-2027 at 4%-13% 583 541
Other non-U.S. dollar debt 46 46
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Total $955 $702
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