Published on 7/29/2016 in the Prospect News Investment Grade Daily.
New Issue: Apple prices $7 billion of fixed-, floating-rate notes
By Lisa Kerner
Charlotte, N.C., July 29 – Apple Inc. priced a combined $7 billion of fixed- and floating-rate notes (Aa1/AA+) due 2019, 2021, 2026 and 2046 on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $350 million of three-year floating-rate notes at par to yield Libor plus 14 basis points.
Apple priced $1.15 billion of 1.1% three-year fixed-rate notes at 99.9 to yield 1.134%, or 32 bps over Treasuries.
A $1.25 billion tranche of 1.35% five-year notes priced at 99.861 to yield 1.579%, or 50 bps over Treasuries.
The company sold $2.25 billion of 2.45% 10-year notes with a spread 98 bps over Treasuries. The notes priced at 99.727 to yield 2.481%.
Finally, Apple priced $2 billion of 3.85% 30-year notes at 99.735 to yield 3.865%, or 163 bps over Treasuries.
Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch and Deutsche Bank Securities Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes, including repurchases of common stock and payment of dividends, funding for working capital, capital expenditures, acquisitions and debt repayment, according to a form 424B2 filed with the SEC.
The computer, mobile communication and media devices company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Issue: | Fixed-, floating-rate notes
|
| Amount: | $7 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc.
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Standard Chartered Bank, Wells Fargo Securities, LLC, Lebenthal & Co., LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Williams Capital Group LP
|
| Trade date: | July 28
|
| Settlement date: | Aug. 4
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $350 million
|
| Maturity: | Aug. 2, 2019
|
| Coupon: | Libor plus 14 bps
|
| Price: | Par
|
| Yield: | Libor plus 14 bps
|
|
|
| Three-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | Aug. 2, 2019
|
| Coupon: | 1.1%
|
| Price: | 99.9
|
| Yield: | 1.134%
|
| Spread: | Treasuries plus 32 bps
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 4, 2021
|
| Coupon: | 1.55%
|
| Price: | 99.861
|
| Yield: | 1.579%
|
| Spread: | Treasuries plus 50 bps
|
| Make-whole call: | Treasuries plus 10 bps prior to July 4, 2021, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Aug. 4, 2026
|
| Coupon: | 2.45%
|
| Price: | 99.727
|
| Yield: | 2.481%
|
| Spread: | Treasuries plus 98 bps
|
| Make-whole call: | Treasuries plus 15 bps prior to May 4, 2026, then callable at par
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | Aug. 4, 2046
|
| Coupon: | 3.85%
|
| Price: | 99.735
|
| Yield: | 3.865%
|
| Spread: | Treasuries plus 163 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Feb. 4, 2046, then callable at par
|
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