Broadcom Looking to Raise Capital

The chipmaker files with the SEC for possible sales of up to $2 billion of stock and debt.

Author:: K.C. Swanson
Publish date:: Feb 23, 2004 3:49 PM EST

The chipmaker files with the SEC for possible sales of up to $2 billion of stock and debt.

Updated from Feb. 20.

Chipmaker

Broadcom

filed a shelf registration late Friday with the

Securities and Exchange Commission

to sell up to $750 million in stock or debt.

The company said it could use the proceeds for general purposes, including making acquisitions, share repurchases and capital expenditures, or for working capital.

Broadcom filed a separate shelf to sell up to 30 million shares of common stock, worth up to $1.18 billion, for use in an acquisition. However, the company wouldn't receive any cash proceeds from that offering.

A shelf filing allows a company to comply with SEC registration requirements up to two years prior to a public offering of stock or debt, but does not compel the company to sell securities.

In recent trading, Broadcom was down $1.30, or 3.2%, to $39.89.

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