By Cristal Cody
Tupelo, Miss., May 4 – Apple Inc. sold $8.5 billion of notes (Aa1/AA+/) in four tranches on Monday in a deal that garnered a final order book total of more than $25 billion, according to a market source.
A $2 billion tranche of 0.75% three-year notes priced at 99.728 to yield 0.842%, or a spread of Treasuries plus 60 basis points.
Initial talk was in the Treasuries plus 95 bps area.
Apple sold $2.25 billion of 1.125% five-year notes at 99.821 to yield 1.162%. The notes priced with a Treasuries plus 80 bps spread, compared to talk in the 110 bps spread area.
The company priced $1.75 billion of 1.65% 10-year notes at 99.296 to yield 1.727%, or Treasuries plus 110 bps.
The 10-year notes were talked at the 130 bps spread area.
Also, $2.5 billion of 2.65% 30-year notes priced at 98.571 to yield 2.72%, or a 145 bps over Treasuries spread.
Initial price guidance was at the 170 bps over Treasuries area.
Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC 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: | $8.5 billion
|
| Description: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | May 4
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 11, 2023
|
| Coupon: | 0.75%
|
| Price: | 99.728
|
| Yield: | 0.842%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 95 bps area
|
|
|
| Five-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | May 11, 2025
|
| Coupon: | 1.125%
|
| Price: | 99.821
|
| Yield: | 1.162%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 11, 2030
|
| Coupon: | 1.65%
|
| Price: | 99.295
|
| Yield: | 1.727%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 11, 2050
|
| Coupon: | 2.65%
|
| Price: | 98.571
|
| Yield: | 2.72%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 170 bps area
|
|
|
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