Broadcom Inc. announced on September 26, 2024, its intention to tap the corporate bond market to secure funds for paying down existing debt. This move follows the company's previous bond issuance in July, where it raised $5 billion.
The funds raised in July were specifically used to refinance loans that were taken on to finance the $69 billion acquisition of VMware Inc. This indicates a continued strategy by Broadcom to manage and optimize its debt profile following major acquisitions.
The decision to access the bond market for debt reduction reflects Broadcom's ongoing efforts to strengthen its financial position. This approach aims to enhance the company's capital structure and maintain financial flexibility.
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