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Cisco dips into record US debt to finance Scientific-Atlanta acquisition

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Cisco dips into record US debt to finance Scientific-Atlanta acquisition

Cisco on Tuesday placed its first bond issue, which the firm said will be used for “general corporate purposes” as well as to fund the purchase of Scientific-Atlanta. The volume of the unsecured notes offering was $6.5 billion – the largest debt debut by a US company ever.

Of the notes issued, $3 billion will mature in February 2011 and will bear interest at an annual rate of 5.25%, $3 billion will mature in February 2016 and will bear interest at an annual rate of 5.50%, and $500 million will mature in February 2009 and will bear interest at an annual rate equal to three-month LIBOR plus eight basis points, Cisco said.