By Andrea Heisinger
New York, May 16 - Google Inc. priced $3 billion of senior notes (Aa2/AA-/) in three parts on Monday in what was its debut bond offering, according to sources close to the trade.
A $1 billion tranche of 1.25% three-year notes sold at 99.977 to yield 1.258% with a spread of Treasuries plus 33 basis points. The notes priced at the tight end of talk, which was for a spread in the 35 bps area.
The tranche carries a make-whole call provision at 5 bps over Treasuries.
The $1 billion of 2.125% five-year notes priced at 99.454 to yield 2.241% with a spread of 43 bps over Treasuries. The notes priced at the tight end of guidance, which was for a spread in the 45 bps area.
The five-year notes have a make-whole call at 7.5 bps over Treasuries.
The third part was $1 billion of 3.625% 10-year notes priced at 99.097 to yield 3.734% with a spread of 58 bps over Treasuries. The notes were talked in the 60 bps area and priced at the tight end of that level.
The 10-year notes have a make-whole call at 10 bps over Treasuries.
Active bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC. Passive bookrunners were Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co., Inc.
Proceeds are being used to repay commercial paper and for general corporate purposes.
The technology company is based in Mountain View, Calif.
| Issuer: | Google Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC (active), Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co., Inc. (passive)
|
| Trade date: | May 16
|
| Settlement date: | May 19
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA-
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 19, 2014
|
| Coupon: | 1.25%
|
| Price: | 99.977
|
| Yield: | 1.258%
|
| Spread: | Treasuries plus 33 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 35 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 19, 2016
|
| Coupon: | 2.125%
|
| Price: | 99.454
|
| Yield: | 2.241%
|
| Spread: | Treasuries plus 43 bps
|
| Call: | Make-whole at Treasuries plus 7.5 bps
|
| Price talk: | 45 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 19, 2021
|
| Coupon: | 3.625%
|
| Price: | 99.097
|
| Yield: | 3.734%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 60 bps area
|
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