INTEL sells stock to buy stock

We were perplexed by INTEL's annoucement that it is offering $1.4 convertible debt . Now it is clear. INTEL has set the terms of the debt offering:

1) The debt is convertible to INTC stock at a price of $31.53 per share after December 15, 2012.

2) INTEL will use the $1.4 billion debt to buy back stocks and for general operations.

The balance sheet we were looking at was for Q3 2005, which showed INTEL having $10 billion cash. I wonder what will INTEL's Q4 2005 balance sheet look like. We will know soon.