Overview

• Intel said it received about $5.7 billion on Wednesday night after amending its Commerce Department funding deal to remove earlier project milestones.
• As part of the conversion, the U.S. received 274.6 million Intel shares, with options for up to 240.5 million more under specified conditions, and 158.7 million shares were placed in escrow tied to Secure Enclave funding.
• The agreement includes a five-year warrant allowing the government to acquire roughly 5% more of Intel if the company ceases to own a majority of its foundry business, a trigger the CFO said he expects will not be needed.
• Guardrails remain that restrict use of funds for dividends and buybacks, limit certain control-changing transactions, and curb expansion in specified countries.
• The White House said Commerce is still finalizing details of the transaction, officials indicated similar equity investments could follow in other strategic industries, and Intel warned in an SEC filing of potential adverse reactions and legal risks.