Apple sees blowout demand for debut bond sale in six tranches Tuesday

By Andrea Heisinger

New York, April 30 - Apple Inc. is set to price its much anticipated first sale of notes (Aa1/AA+/) in six tranches on Tuesday, according to market sources and a 424B2 filing with the Securities and Exchange Commission.

A source said at midday that initial investor demand was for $5 billion to $6 billion but had ballooned to about $40 billion. The company could price in the ballpark of $15 billion of bonds, the source said.

Included in the sale are floating-rate tranches due 2016 and 2018. Both are non-callable.

The remainder is fixed-rate notes due 2016, 2018, 2023 and 2043.

Bookrunners are Goldman Sachs & Co. and Deutsche Bank Securities Inc.

Proceeds will be used for general corporate purposes, including common stock repurchase and dividend payment under a recently expanded program to return capital to shareholders.

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

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