By Cristal Cody
Tupelo, Miss., Aug. 13 – Apple Inc. priced $5.5 billion of notes (Aa1/AA+) in four tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1.25 billion of 0.55% five-year notes at 99.764 to yield 0.598%, or a spread of Treasuries plus 28 basis points.
Initial talk was in the Treasuries plus 45 bps area.
A $1.25 billion tranche of 1.25% 10-year notes priced at 99.757 to yield 1.276%, or Treasuries plus 58 bps.
The issue was talked to print at the 75 bps spread area.
Apple sold $1.25 billion of 2.4% 30-year notes at 99.724 to yield 2.413%. The bonds priced with a Treasuries plus 100 bps spread.
Initial price guidance was at the 115 bps over Treasuries area.
The company also brought $1.75 billion of 2.55% 40-year notes to the market at 98.933 to yield 2.593%, or Treasuries plus 118 bps.
Price guidance was at the 135 bps spread area.
Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including stock repurchases and dividend payments, working capital, capital expenditures, acquisitions and debt repayment.
The computer, mobile communication and media devices company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Amount: | $5.5 billion
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Deutsche Bank Securities Inc., Samuel A. Ramirez & Co., Inc., CastleOak Securities, LP, Siebert Williams Shank & Co., LLC, Loop Capital Markets LLC and Blaylock Van, LLC
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 20
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 20, 2025
|
| Coupon: | 0.55%
|
| Price: | 99.764
|
| Yield: | 0.598%
|
| Spread: | Treasuries plus 28 bps
|
| Call feature: | Make-whole call before July 20, 2025 at price equal to greater of par or Treasuries plus 5 bps; thereafter at par
|
| Price guidance: | Treasuries plus 45 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 20, 2030
|
| Coupon: | 1.25%
|
| Price: | 99.757
|
| Yield: | 1.276%
|
| Spread: | Treasuries plus 58 bps
|
| Call feature: | Make-whole call before May 20, 2030 at price equal to greater of par or Treasuries plus 10 bps; thereafter at par
|
| Price guidance: | Treasuries plus 75 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 20, 2050
|
| Coupon: | 2.4%
|
| Price: | 99.724
|
| Yield: | 2.413%
|
| Spread: | Treasuries plus 100 bps
|
| Call feature: | Make-whole call before Feb. 20, 2050 at price equal to greater of par or Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 115 bps area
|
|
|
| 40-year notes
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| Amount: | $1.75 billion
|
| Maturity: | Aug. 20, 2060
|
| Coupon: | 2.55%
|
| Price: | 98.933
|
| Yield: | 2.593%
|
| Spread: | Treasuries plus 118 bps
|
| Call feature: | Make-whole call before Feb. 20, 2060 at price equal to greater of par or Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 135 bps area
|
|
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