Midday Commentary: Apple's record-setting bond offering in demand, trades tighter

By Aleesia Forni

Virginia Beach, Va., May 1 - The six-part mega-deal from Apple Inc., which came to market during Tuesday's session, was seen trading better in the investment-grade secondary market with strong investor demand, according to a market source.

The $2 billion of three-year notes, which were sold at a spread of Treasuries plus 20 bps, were quoted 5 basis points tighter at 15 bps bid, 14 bps offered.

The $4 billion tranche of five-year bonds traded 2 bps better compared to levels seen late Wednesday at 36 bps bid, 33 bps offered.

Apple sold the notes at a spread of 40 bps over Treasuries.

Meanwhile, the $5.5 billion of 10-year notes were quoted 1 bp better at 71 bps bid, 68 bps offered following Wednesday's sale at Treasuries plus 75 bps.

The $3 billion of 30-year bonds were quoted at 92 bps bid, 90 bps offered, 5 bps better compared to Tuesday's levels.

The notes were sold at Treasuries plus 100 bps.

The sale also included a $1 billion tranche of three-year floating-rate notes priced at par to yield Libor plus 5 bps and $1.5 billion of five-year floaters sold at par to yield Libor plus 25 bps.

The computer and mobile communications device company is based in Cupertino, Calif.

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