Published on 7/30/2021 in the Prospect News Investment Grade Daily.
New Issue: Apple prices $6.5 billion notes due 2028, 2031, 2051, 2061
By Devika Patel
Knoxville, Tenn., July 30 – Apple Inc. priced $6.5 billion of notes (Aa1/AA+) in four tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
There was $2.3 billion of 1.4% seven-year bonds sold with a 40 basis points spread over Treasuries. Pricing was at 99.774 to yield 1.434%.
The company sold $1 billion of 1.7% 10-year bonds with a 47 bps spread over Treasuries. Pricing was at 99.58 to yield 1.746%.
Apple priced $1.8 billion of 2.7% 30-year bonds with a 77 bps spread over Treasuries. Pricing was at 99.898 to yield 2.705%.
There was also $1.4 billion of 2.85% 40-year bonds sold with a 92 bps spread over Treasuries. Pricing was at 99.881 to yield 2.855%.
Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were joint bookrunners.
Bank of New York Mellon Trust Co., NA is the trustee.
Latham & Watkins LLP advised the issuer.
The notes will be used for general corporate purposes, which may include working capital, payment of dividends, capital expenditures, repurchases of common stock, repayment of debt and acquisitions.
Based in Cupertino, Calif., Apple designs, manufactures and markets mobile communication and media devices and personal computers.
| Issuer: | Apple Inc.
|
| Issue: | Notes
|
| Amount: | $6.5 billion
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Wells Fargo Securities LLC, CastleOak Securities LP, Drexel Hamilton LLC, Great Pacific Securities, Loop Capital Markets LLC, R. Seelaus & Co. Inc. and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | July 29
|
| Settlement date: | Aug. 5
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
|
| Amount: | $2.3 billion
|
| Maturity: | Aug. 5, 2028
|
| Coupon: | 1.4%
|
| Price: | 99.774
|
| Yield: | 1.434%
|
| Spread: | Treasuries plus 40 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until June 5, 2028, then a par call
|
| Cusip: | 037833EH9
|
|
|
| 2031 notes
|
| Amount: | $1 billion
|
| Maturity: | Aug. 5, 2031
|
| Coupon: | 1.7%
|
| Price: | 99.58
|
| Yield: | 1.746%
|
| Spread: | Treasuries plus 47 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until May 5, 2031, and then a par call
|
| Cusip: | 037833EJ5
|
|
|
| 2051 notes
|
| Amount: | $1.8 billion
|
| Maturity: | Aug. 5, 2051
|
| Coupon: | 2.7%
|
| Price: | 99.898
|
| Yield: | 2.705%
|
| Spread: | Treasuries plus 77 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps until Feb. 5, 2051, and then a par call
|
| Cusip: | 037833EK2
|
|
|
| 2061 notes
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| Amount: | $1.4 billion
|
| Maturity: | Aug. 5, 2061
|
| Coupon: | 2.85%
|
| Price: | 99.881
|
| Yield: | 2.855%
|
| Spread: | Treasuries plus 92 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 5, 2061, then a par call
|
| Cusip: | 037833EL0
|
|
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