Intel says COVID-19 could cause a global recession, as it looks to raise $8 billion in a bond offering

Intel

Intel CEO Bob Swan

• Intel says the coronavirus crisis has "significant increased economic and demand uncertainty," according to a Monday filing with the US Securities and Exchange commission.
• The tech giant also warned that COVID-19 will likely cause a slowdown "and it is possible that it could cause a global recession."
• Intel is looking to raise $7.96 billion in a bond offering which it hopes to use for "general corporate purposes," including refinancing debt and for working capital and capital expenditures.
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Intel said Monday that the coronavirus crisis has "significantly increased economic demand uncertainty" and could lead to a global recession.

Intel offered this insight in a Monday filing with the US Securities and Exchange Commission in which the tech giant said it was looking to raise $7.96 billion in a new senior note offering.

"It is likely that the current outbreak or continued spread of COVID-19 will cause an economic slowdown, and it is possible that it could cause a global recession," Intel said.

Intel, the dominant player in the semiconductor industry, said the crisis could "materially" have an impact on its financials and operations.

The company noted that it has "significant manufacturing operations" in the US, Ireland, Israel, China, Malaysia and Vietnam which have been affected by the pandemic. Intel said the disruptions "could limit our capacity to meet customer demand."

Intel said it expects to raise $7.96 billion from the sale of the senior notes, which it plans to use for "general corporate purposes," including refinancing its debt and for working capital and capital expenditures.

IDC President Crawford Del Prete said he believes Intel is looking to "maintain liquidity in what will surely be a highly difficult period going forward."

"Intel's business is cash hungry, it takes a lot of cash to maintain manufacturing capacity," he told Business Insider. "They know it's going to get rough, and want to be prepared."

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