(Bloomberg) -- A company tied to Intel Corp.’s expansion of computer chip factories in Arizona is selling $3.85 billion of investment-grade bonds on Thursday.  

Foundry JV Holdco is selling notes in four parts. The longest portion of the offering, a long 13-year note, is set to yield 185 basis points over US Treasuries after initial talk of 220 basis points, according to a person familiar with the matter. Proceeds are set to refinance other borrowings. 

Read more: Foundry JV Holdco LLC $3.85bn Sr Sec 4pt Offering

Foundry JV Holdco is a special-purpose entity that holds Brookfield’s 49% interest in a joint venture with Intel in which the companies agreed to spend as much as $30 billion to expand chip plants in Chandler, Arizona. The firm priced its initial $1.1 billion offering in May 2023.

Intel is investing billions of dollars to upgrade chip factories and build new ones as it looks to regain ground lost to Asian rivals Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. The Santa Clara, California-based chipmaker has committed $28 billion to build a fabrication facility in Ohio with a goal to make it the biggest chip factory in the world. 

Intel’s investments are coming in part from incentives stemming from the US Chips and Science act, signed into law in 2022. The Biden administration has awarded Intel $20 billion in grants and loans. 

Read More: Intel Is Spending $28 Billion to Make Ohio a Global Chip Capital

Moody’s downgraded Foundry JV Holdco’s credit rating to Baa1, or three steps above junk, from A3 in February, days after it cut Intel’s unsecured rating. However, the completion of the project is “an important long-term strategic investment for Intel,” Moody’s wrote at the time.

The notes are expected to be sold Thursday with BNP Paribas SA, Bank of Nova Scotia, Societe Generale SA and Wells Fargo & Co. as bookrunners. 

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