By Andrea Heisinger
New York, May 1 - Apple Inc. gave the terms of its $17 billion debut sale of notes priced on Tuesday in six tranches (Aa1/AA+/), according to an FWP filing with the Securities and Exchange Commission.
A source said at midday Tuesday that initial investor demand was for $5 billion to $6 billion but had ballooned to about $50 billion by noon ET.
A $1 billion tranche of three-year floating-rate notes was priced at par to yield Libor plus 5 basis points. Initial talk was in the Libor plus 20 bps area and was revised to the Libor plus 10 bps area.
There was $2 billion of five-year floaters sold at par to yield Libor plus 25 bps. Guidance was initially in the Libor plus 35 bps area and later tightened to the Libor plus 30 bps area.
The $1.5 billion of 0.45% three-year notes sold at 99.819 to yield 0.55% with a spread of Treasuries plus 20 bps. Initial talk was in the Treasuries plus 40 bps area and later revised to the 25 bps area.
There is a make-whole call at Treasuries plus 5 bps.
A $4 billion tranche of 1% five-year notes was sold at 99.631 to yield 1.076% with a spread of 40 bps over Treasuries. Talk was in the 55 bps area at first but later tightened to the 45 bps area.
The tranche has a make-whole call option at 10 bps over Treasuries.
There was $5.5 billion of 2.4% 10-year notes sold at 99.867 to yield 2.415% with a spread of Treasuries plus 75 bps. Initial guidance was in the 90 bps to 95 bps area and later tightened to the 80 bps area.
The 10-year notes have a make-whole call at Treasuries plus 15 bps.
Finally, there was $3 billion of 3.85% 30-year bonds priced at 99.418 to yield 3.883% with a spread of Treasuries plus 100 bps. Talk was given in the 115 bps to 120 bps area, which was later tightened to the 105 bps area.
There is a make-whole call at 15 bps over Treasuries.
Talk on all of the bonds had a margin of plus or minus 5 bps.
The tranche sizes of the five-year floaters and three-year fixed-rate notes were described incorrectly in Wednesday's edition of the Prospect News Investment Grade Daily.
Bookrunners were Goldman Sachs & Co. and Deutsche Bank Securities Inc.
Proceeds will be used for general corporate purposes, including common stock repurchases and dividend payments under a recently expanded program to return capital to shareholders.
The computer and mobile communications device company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Issue: | Notes
|
| Amount: | $17 billion
|
| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc.
|
| Co-managers: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc.
|
| Trade date: | April 30
|
| Settlement date: | May 3
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA+
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | May 3, 2016
|
| Coupon: | Libor plus 5 bps
|
| Price: | Par
|
| Yield: | Libor plus 5 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 20 bps area (initial), Libor plus 10 bps area, plus or minus 5 bps (revised)
|
|
|
| Five-year floaters
|
| Amount: | $2 billion
|
| Maturity: | May 3, 2018
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 35 bps area (initial), Libor plus 30 bps area, plus or minus 5 bps (revised)
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 3, 2016
|
| Coupon: | 0.45%
|
| Price: | 99.819
|
| Yield: | 0.55%
|
| Spread: | Treasuries plus 20 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 40 bps area (initial), 25 bps area, plus or minus 5 bps (revised)
|
|
|
| Five-year notes
|
| Amount: | $4 billion
|
| Maturity: | May 3, 2018
|
| Coupon: | 1%
|
| Price: | 99.631
|
| Yield: | 1.076%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 55 bps area (initial), 45 bps area, plus or minus 5 bps (revised)
|
|
|
| 10-year notes
|
| Amount: | $5.5 billion
|
| Maturity: | May 3, 2023
|
| Coupon: | 2.4%
|
| Price: | 99.867
|
| Yield: | 2.415%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 90 bps to 95 bps (initial), 80 bps area, plus or minus 5 bps (revised)
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 4, 2043
|
| Coupon: | 3.85%
|
| Price: | 99.418
|
| Yield: | 3.883%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 115 bps to 120 bps (initial), 105 bps area, plus or minus 5 bps (revised)
|
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