By Aleesia Forni
Virginia Beach, May 6 – Apple Inc. sold an $8 billion seven-part offering of senior notes (Aa1/AA+/) on Wednesday, according to an informed source.
The sale included $250 million of two-year floating-rate notes priced at par to yield Libor plus 5 basis points.
A $750 million 0.9% two-year note sold at 99.931 to yield 0.935%, or Treasuries plus 30 bps.
Pricing was in line with guidance set in the 30 bps area after having tightened from initial talk in the 40 bps area over Treasuries.
A $500 million five-year floating-rate note sold at par to yield Libor plus 30 bps.
The company also sold $1.25 billion of 2% five-year notes at 99.845 to yield 2.033%, or Treasuries plus 45 bps.
The notes sold at the tight end of guidance in the range of 45 bps to 50 bps over Treasuries. Initial guidance was set in the range of 50 bps to 55 bps over Treasuries.
There was a $1.25 billion 2.7% seven-year note priced at 99.816 to yield 2.729%, or 75 bps over Treasuries.
Guidance was set in the range of Treasuries plus 75 bps to 80 bps after having tightened from talk in the Treasuries plus 85 bps area.
Apple also sold $2 billion of 3.2% 10-year notes with a spread of Treasuries plus 100 bps. Pricing was at 99.562 to yield 3.241%.
The notes were guided at 100 bps to 105 bps over Treasuries following initial talk set in the 110 bps area over Treasuries.
Finally, $2 billion of 4.375% 30-year bonds priced at 99.635 to yield 4.397%, or Treasuries plus 140 bps.
The tranche was guided in the range of Treasuries plus 140 bps to 145 bps. Initial talk was in the 150 bps area over Treasuries.
Goldman Sachs & Co., BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes, including repurchases of common stock and payment of dividends under the company’s recently expanded program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt.
The computer and mobile communications device company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Issue: | Senior notes
|
| Amount: | $8 billion
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Trade date: | May 6
|
| Settlement date: | May 11
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $250 million
|
| Maturity: | May 12, 2017
|
| Coupon: | Libor plus 5 bps
|
| Price: | Par
|
| Yield: | Libor plus 5 bps
|
| Price guidance: | Libor equivalent to two-year fixed-rate notes
|
|
|
| Two-year notes
|
| Amount: | $750 million
|
| Maturity: | May 12, 2017
|
| Coupon: | 0.9%
|
| Price: | 99.931
|
| Yield: | 0.935%
|
| Spread: | 30 bps over Treasuries
|
| Price guidance: | 30 bps area over Treasuries, tightened from 40 bps area
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 13, 2020
|
| Coupon: | Libor plus 30 bps
|
| Price: | Par
|
| Yield: | Libor plus 30 bps
|
| Price guidance: | Libor equivalent to five-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 13, 2020
|
| Coupon: | 2%
|
| Price: | 99.845
|
| Yield: | 2.033%
|
| Spread: | 45 bps over Treasuries
|
| Price guidance: | 45 bps to 50 bps over Treasuries, tightened from 50 bps to 55 bps
|
|
|
| Seven-year bonds
|
| Amount: | $1.25 billion
|
| Maturity: | May 13, 2022
|
| Coupon: | 2.7%
|
| Price: | 99.816
|
| Yield: | 2.729%
|
| Spread: | 75 bps over Treasuries
|
| Price guidance: | 75 bps to 80 bps over Treasuries, tightened from 85 bps area
|
|
|
| 10-year bonds
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.2%
|
| Price: | 99.562
|
| Yield: | 3.241%
|
| Spread: | 100 bps over Treasuries
|
| Price guidance: | 100 bps to 105 bps over Treasuries, tightened from 110 bps area
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2045
|
| Coupon: | 4.375%
|
| Price: | 99.635
|
| Yield: | 4.397%
|
| Spread: | 140 bps over Treasuries
|
| Price guidance: | 140 bps to 145 bps over Treasuries, tightened from 150 bps area
|
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