Intel initiates $ 10 billion share repurchase agreements

Intel Corporation announced today that it is in agreement with Accelerated Repurchase (ASR) agreements to repurchase a $ 10 billion aggregate from Intel’s common stock. Following the completion of these agreements, Intel will have acquired a total of approximately $ 17.6 billion in share purchases as part of its planned $ 20 billion share purchase in October 2019.

“We achieved record financial results in the first half of 2020, raising our outlook for the full year as customers rely on Intel technology to deliver critical services and enable people to work, learn and connect “As data growth continues to drive demand for Intel products to be processed, relocated and stored, we are confident in our multi-year plan to deliver leadership products,” said Intel CEO Bob Swan. “While the macroeconomic environment remains uncertain, Intel shares are currently trading well below our intrinsic valuation, and we believe these repurchases are currently prudent.”

Under the terms of the ASR agreements, Intel will receive an initial share offering of approximately 166 million shares, with the final settlement taking place at the end of 2020. The final number of shares purchased by Intel will be based on the volume-weighted average share price of Intel’s common stock in the term of the agreements, less a discount and subject to adjustments.

Intel is financing the acquisition of shares under the ASR agreements with existing cash sources. Strong management results in the first half of 2020 have contributed to a healthy liquidity balance, giving Intel the opportunity to invest in the company in a period of economic uncertainty, while also returning capital to shareholders through dividends and this acquisition of shares. Intel plans to complete the $ 2.4 billion balance of its planned $ 20 billion share repurchase and return to its historic return on capital practices as markets stabilize.

BNP Paribas Securities Corp. served as the sole structural advisor to Intel regarding the ASR agreements.

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 acquisition of shares, and Intel’s corporate distribution, are forward – looking statements that involve a number of risks and uncertainties. . Be like “expect,” “expect,” “mean,” “aim,” “plan,” “believe,” “seek,” “treasure,” “remain,” “can,” “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 regarding future products and technology and the expected availability and benefits of such products and technology, market potential, our appreciation, our ability to invest and return capital, and expected trends in our companies as well as those relevant to their markets, also identify forward-looking statements. Such statements are based on the current expectations of management and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Key factors that may cause actual results to differ materially from the Company’s expectations include, but are not limited to, the ability of a counterparty to purchase or borrow shares of Intel common stock after an ASR agreement; the market price of just common Intel in 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 sector; and the factors described in Intel’s earnings release dated July 23, 2020, which is included as an exhibit for Intel’s Form 8-K submitted 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 can be obtained by visiting our Investor Relations website at www.intc.com or the SEC’s website at www.sec.gov. Intel assumes no obligation, and disclaims all obligation, 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 .

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