By Devika Patel
Knoxville, Tenn., Feb. 2 – Apple Inc. priced $14 billion of notes (Aa1/AA+) in six tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $2.5 billion tranche of 0.7% five-year notes priced with a 32 basis points spread over Treasuries. Pricing was at 99.775 to yield 0.746%.
And $2.5 billion of 1.2% seven-year notes priced with a 47 bps spread over Treasuries. Pricing was at 99.759 to yield 1.236%.
There was $2.75 billion of 1.65% 10-year bonds sold with a 57 bps spread over Treasuries. Pricing was at 99.972 to yield 1.653%.
The company sold $1.5 billion of 2.375% 20-year bonds with a 72 bps spread over Treasuries. Pricing was at 99.842 to yield 2.385%.
Apple priced $3 billion of 2.65% 30-year bonds with an 82 bps spread over Treasuries. Pricing was at 99.343 to yield 2.682%.
The company also sold $1.75 billion of 2.8% 40-year bonds with a 95 bps spread over Treasuries. Pricing was at 99.713 to yield 2.812%.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and BofA Securities Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including the repurchase of its common stock and the payment of dividends, as well as to fund working capital, capital expenditures, acquisitions and the repayment of debt.
The computer, mobile communication and media devices company is based in Cupertino, Calif.
Issuer: | Apple Inc.
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Issue: | Notes
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Amount: | $14 billion
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Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and BofA Securities Inc.
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Co-managers: | Academy Securities Inc., Blaylock Van, LLC, Drexel Hamilton LLC, R. Seelaus & Co. Inc., Samuel A. Ramirez & Co. Inc. and Siebert Williams Shank & Co. LLC
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Trade date: | Feb. 1
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Settlement date: | Feb. 8
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Ratings: | Moody’s: Aa1
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| S&P: AA+
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Distribution: | SEC registered
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Five-year notes
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Amount: | $2.5 billion
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Maturity: | Feb. 8, 2026
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Coupon: | 0.7%
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Price: | 99.775
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Yield: | 0.746%
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Spread: | Treasuries plus 32 bps
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Call: | Make-whole call at Treasuries plus 5 bps until Jan. 8, 2026, then a par call
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Seven-year notes
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Amount: | $2.5 billion
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Maturity: | Feb. 8, 2028
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Coupon: | 1.2%
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Price: | 99.759
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Yield: | 1.236%
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Spread: | Treasuries plus 47 bps
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Call: | Make-whole call at Treasuries plus 7.5 bps until Dec. 8, 2027, then a par call
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10-year notes
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Amount: | $2.75 billion
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Maturity: | Feb. 8, 2031
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Coupon: | 1.65%
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Price: | 99.972
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Yield: | 1.653%
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Spread: | Treasuries plus 57 bps
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Call: | Make-whole call at Treasuries plus 10 bps until Nov. 8, 2030 and then a par call
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20-year notes
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Amount: | $1.5 billion
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Maturity: | Feb. 8, 2041
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Coupon: | 2.375%
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Price: | 99.842
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Yield: | 2.385%
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Spread: | Treasuries plus 72 bps
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Call: | Make-whole call at Treasuries plus 12.5 bps until Aug. 8, 2040 and then a par call
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30-year notes
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Amount: | $3 billion
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Maturity: | Feb. 8, 2051
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Coupon: | 2.65%
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Price: | 99.343
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Yield: | 2.682%
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Spread: | Treasuries plus 82 bps
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Call: | Make-whole call at Treasuries plus 15 bps until Aug. 8, 2050 and then a par call
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40-year notes
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Amount: | $1.75 billion
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Maturity: | Feb. 8, 2061
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Coupon: | 2.8%
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Price: | 99.713
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Yield: | 2.812%
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Spread: | Treasuries plus 95 bps
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Call: | Make-whole call at Treasuries plus 15 bps until Aug. 8, 2060 and then a par call
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