By William Gullotti and Cristal Cody
Buffalo, N.Y., Aug. 2 – Apple Inc. priced $5.5 billion of notes (Aaa/AA+) in four tranches on Monday, according to an FWP filed with the Securities and Exchange Commission and additional information from a market source.
There was $1 billion of 3.25% seven-year notes sold with a 63 basis points spread over Treasuries. Pricing was at 99.876 to yield 3.27%. Initial talk was in the 65 bps area. The series features a make-whole call at Treasuries plus 10 bps prior to June 8, 2029, followed by a par call until maturity.
The company sold $1.5 billion of 3.35% 10-year bonds with a 78 bps spread over Treasuries. Pricing was at 99.882 to yield 3.364%. Initial talk was in the 80 bps area. Notes from this series will have a make-whole call at Treasuries plus 12.5 bps prior to May 8, 2032, likewise followed by a par call until maturity.
Apple priced $1.75 billion of 3.95% 30-year bonds with a 105 bps spread over Treasuries. Pricing was at 99.339 to yield 3.988%. Initial talk was in the 135 bps area.
There was also $1.25 billion of 4.1% 40-year bonds sold with a 118 bps spread over Treasuries. Pricing was at 99.648 to yield 4.118%. Initial talk was in the Treasuries plus 150 bps area.
Notes from the final two series will have a make-whole call at Treasuries plus 20 bps prior to six months prior to maturity, followed by a par call until maturity.
Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the joint bookrunning managers for the offering.
As previously reported, proceeds will be used for general corporate purposes, including common stock repurchases, dividend payments, working capital, capital expenditures, acquisitions and debt repayment.
Based in Cupertino, Calif., Apple designs, manufactures and markets mobile communication and media devices and personal computers.
| Issuer: | Apple Inc.
|
| Amount: | $5.5 billion
|
| Issue: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Academy Securities, Inc., Cabrera Capital Markets LLC, CastleOak Securities, LP, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Latham & Watkins LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody’s: Aaa
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| 2029 notes
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| Amount: | $1 billion
|
| Maturity: | Aug. 8, 2029
|
| Coupon: | 3.25%
|
| Price: | 99.876
|
| Yield: | 3.27%
|
| Spread: | Treasuries plus 63 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps prior to June 8, 2029, then a par call
|
| Price talk: | Treasuries plus 65 bps area
|
| Cusip: | 037833EN6
|
|
|
| 2032 notes
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| Amount: | $1.5 billion
|
| Maturity: | Aug. 8, 2032
|
| Coupon: | 3.35%
|
| Price: | 99.882
|
| Yield: | 3.364%
|
| Spread: | Treasuries plus 78 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps prior to May 8, 2032, and then a par call
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 037833EP1
|
|
|
| 2052 notes
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| Amount: | $1.75 billion
|
| Maturity: | Aug. 8, 2052
|
| Coupon: | 3.95%
|
| Price: | 99.339
|
| Yield: | 3.988%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps prior to Feb. 8, 2052, and then a par call
|
| Price talk: | Treasuries plus 135 bps area
|
| Cusip: | 037833EQ9
|
|
|
| 2062 notes
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| Amount: | $1.25 billion
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| Maturity: | Aug. 8, 2062
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| Coupon: | 4.1%
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| Price: | 99.648
|
| Yield: | 4.118%
|
| Spread: | Treasuries plus 118 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps prior to Feb. 8, 2062, then a par call
|
| Price talk: | Treasuries plus 150 bps area
|
| Cusip: | 037833ER7
|
|
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