Intel sells $1.75 billion of 3.25 percent notes

SANTA CLARA, Calif. - Intel Corp. said it has sold $1.75 billion of 3.25 percent convertible notes due in 2039.

The chip maker said late Tuesday it plans to use up to $1.5 billion of the proceeds to buy back stock.

The debt's initial conversion rate is 44.09 common shares for every $1,000 of notes, meaning note holders would pay $22.68 per share. That's a 20 percent premium over Intel's closing share price of $18.90 on Tuesday.

The debt's terms do not allow Intel to buy back the notes in most cases before Aug. 5, 2019. After that date, the company can pay cash for some or all the notes as long as its stock price is 150 percent of the conversion price for 20 consecutive trading days.

Shares rose 13 cents to $19.03 in morning trading.

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