By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., May 9 – Apple Inc. priced $5.25 billion in notes in five parts (Aaa/AA+) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The $1 billion of 4.421% notes due May 8, 2026 priced at par, or at Treasuries plus 70 basis points. Price talk was in the Treasuries plus 90 bps area.
They have a make-whole call at Apple’s option before May 8, 2024 at Treasuries plus 12.5 bps and for the last 24 months at par.
The $1.5 billion of 4% notes due May 10, 2028 priced at 99.807 to yield 4.043%, or at Treasuries plus 55 bps. Price talk was in the 80 bps area, tighter than the tranches on either side of it.
They feature a make-whole call at Apple’s option before April 10, 2028 at Treasuries plus 10 bps. For the last month, they are callable at par.
The $500 million of 4.15% notes due May 10, 2030 priced at 99.729 to yield 4.195%, or at Treasuries plus 70 bps. Price talk was in the 90 bps area.
They feature a make-whole call at Apple’s option before March 10, 2030 at Treasuries plus 12.5 bps. For the last two months, there will be a par call.
The $1 billion of 4.3% notes due May 10, 2033 priced at 99.911 to yield 4.311%, or at Treasuries plus 80 bps. The notes were talked in the Treasuries plus 105 bps area.
They feature a make-whole call at Apple’s option before Feb. 10, 2033 at Treasuries plus 12.5 bps. For the last three months, there will be a par call.
The $1.25 billion of 4.85% notes due May 10, 2053 priced at 99.499 to yield 4.882%, or at Treasuries plus 108 bps. Price talk was in the 135 bps area.
The notes will be callable at a make-whole premium of Treasuries plus 20 bps before Nov. 10, 2052. For the last six months, it will convert to a par call.
Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Securities, Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are leading the sale.
The company will use the proceeds for general corporate purposes, including share repurchases, dividends, funding for working capital, capital expenditures, acquisitions and debt repayment.
Cupertino, Calif.-based Apple manufactures and markets smartphones, personal computers, tablets, wearables and accessories.
| Issuer: | Apple Inc.
|
| Amount: | $5.25 billion
|
| Issue: | Notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Barclays, J.P. Morgan Securities LLC, BofA Securities, Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | Academy Securities, Inc., Cabrera Capital Markets LLC, CastleOak Securities, LP, Great Pacific Securities, Loop Capital Markets LLC and R. Seelaus & 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: | May 8
|
| Settlement date: | May 10
|
| Ratings: | Moody’s: Aaa
|
| S&P: AA+
|
|
|
| 2026 notes
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| Amount: | $1 billion
|
| Maturity: | May 8, 2026
|
| Coupon: | 4.421%
|
| Price: | Par
|
| Yield: | 4.421%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Before May 8, 2024 at Treasuries plus 12.5 bps; after at par
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 037833ES5
|
|
|
| 2028 notes
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| Amount: | $1.5 billion
|
| Maturity: | May 10, 2028
|
| Coupon: | 4%
|
| Price: | 99.807
|
| Yield: | 4.043%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | Before April 10, 2028 at Treasuries plus 10 bps; after at par
|
| Price talk: | Treasuries plus 80 bps area
|
| Cusip: | 037833ET3
|
|
|
| 2030 notes
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| Amount: | $500 million
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| Maturity: | May 10, 2030
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| Coupon: | 4.15%
|
| Price: | 99.729
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| Yield: | 4.195%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Before March 10, 2030 at Treasuries plus 12.5 bps; after at par
|
| Price talk: | Treasuries plus 90 bps area
|
| Cusip: | 037833EU0
|
|
|
| 2033 notes
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| Amount: | $1 billion
|
| Maturity: | May 10, 2033
|
| Coupon: | 4.3%
|
| Price: | 99.911
|
| Yield: | 4.311%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Before Feb. 10, 2033 at Treasuries plus 12.5 bps; after at par
|
| Price talk: | Treasuries plus 105 bps area
|
| Cusip: | 037833EV8
|
|
|
| 2053 notes
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| Amount: | $1.25 billion
|
| Maturity: | May 10, 2053
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| Coupon: | 4.85%
|
| Price: | 99.499
|
| Yield: | 4.882%
|
| Spread: | Treasuries plus 108 bps
|
| Call features: | Before Nov. 10, 2052 at Treasuries plus 20 bps; after at par
|
| Price talk: | Treasuries plus 135 bps area
|
| Cusip: | 037833EW6
|
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