Texas Instruments prices $2B bond sale to fund Silicon Labs deal
What's the deal? Texas Instruments has priced $2 billion in senior unsecured notes to help fund its planned acquisition of Silicon Laboratories. The chipmaker sold four series of fixed-rate notes with coupons between 5.000% and 5.750% and maturities running from 2028 to 2036.
By the numbers: The raise ranks in the 94th percentile by size among all post-IPO debt rounds recorded in the US, placing it well above the typical deal in that category.
Why now? The debt sale lands as Texas Instruments posts a sharp recovery. Third-quarter 2026 revenue rose 28% year over year to $6.06 billion, while diluted EPS climbed 77% to $2.62, with growth across industrial, automotive, and data-center markets. It guided fourth-quarter revenue to a range of $5.80 billion to $6.30 billion.
What's the endgame? The notes finance TI's roughly $7.5 billion all-cash purchase of Silicon Labs, announced in February and expected to close in the first half of 2027. The deal broadens the company's wireless-connectivity and embedded-processing business, adding depth to a portfolio built around in-house 300mm fabs.
What could go wrong? The new debt adds interest and depreciation costs as TI continues to invest heavily in manufacturing capacity. Softer end-market demand could leave new fabs and the acquired assets underused, pressuring margins and free cash flow.
The signal: For Texas Instruments, the bond sale is a routine financing step, not a new operating milestone. The real test is execution — whether recovering demand and the Silicon Labs business can support heavy capital spending and a larger debt load.
Read more: simplywall.st
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