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EMC Raises $5.5 Billion With First Bond Offering in Six Years

June 3 (Bloomberg) -- EMC Corp., the world’s biggest maker of storage computers, sold $5.5 billion of bonds in its first offering since 2007.

EMC issued $2.5 billion of 1.875 percent, five-year notes that yield 85 basis points more than similar-maturity Treasuries, $2 billion of 2.65 percent, seven-year securities with a 115 basis-point spread and $1 billion of 3.375 percent bonds due 2023 that pay an extra 125, according to data compiled by Bloomberg.

The spread on the 10-year securities is wider than an initial estimate of between 115 basis points and 120 basis points made earlier today by a person with knowledge of the transaction who asked not to be identified, citing lack of authorization to speak publicly.

Proceeds will be used to repay its $1.71 billion of 1.75 percent convertible debt maturing in December, as well as to fund general corporate purposes including stock buybacks, Hopkinton, Massachusetts-based EMC said today in a regulatory filing.

The new bonds are EMC’s first since issuing the convertibles in February 2007, Bloomberg data show. Those securities, which EMC can repay with cash or common stock at a conversion price of $16.08 per share, ended last week at 155.2 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. EMC shares closed at $24.74.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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