By Andrea Heisinger
New York, April 30 - Apple Inc. priced $17 billion in six tranches in its debut sale of notes (Aa1/AA+/) on Tuesday, according to market sources.
A source said at midday that initial investor demand was for $5 billion to $6 billion but had ballooned to about $50 billion by noon ET.
A $1 billion tranche of three-year floating-rate notes was priced at par to yield Libor plus 5 basis points. Initial talk was in the Libor plus 20 bps area, and was revised to the Libor plus 10 bps area.
There was $1.5 billion of five-year floaters sold at par to yield Libor plus 25 bps. Guidance was initially in the Libor plus 35 bps area and later tightened to the Libor plus 30 bps area.
The $2 billion of three-year fixed-rate notes were sold with a spread of Treasuries plus 20 bps. Initial talk was in the Treasuries plus 40 bps area and later revised to the 25 bps area.
A $4 billion tranche of five-year bonds was sold with a spread of 40 bps over Treasuries. Talk was in the 55 bps area at first but later tightened to the 45 bps area.
There was $5.5 billion of 10-year notes sold at Treasuries plus 75 bps. Initial guidance was in the 90 bps to 95 bps area and later tightened to the 80 bps area.
Finally, there was $3 billion of 30-year bonds priced at a spread of Treasuries plus 100 bps. Talk was given in the 115 bps to 120 bps area and later tightened to the 105 bps area.
Talk on all of the bonds had a margin of plus or minus 5 bps.
Full terms were unavailable at press time.
Bookrunners were Goldman Sachs & Co. and Deutsche Bank Securities Inc.
Proceeds will be used for general corporate purposes, including common stock repurchases and dividend payments under a recently expanded program to return capital to shareholders.
The computer and mobile communications device company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Issue: | Notes
|
| Amount: | $17 billion
|
| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc.
|
| Co-managers: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc.
|
| Trade date: | April 30
|
| Settlement date: | May 3
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA+
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | 2016
|
| Coupon: | Libor plus 5 bps
|
| Price: | Par
|
| Yield: | Libor plus 5 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 20 bps area (initial), Libor plus 10 bps area, plus or minus 5 bps (revised)
|
|
|
| Five-year floaters
|
| Amount: | $1.5 billion
|
| Maturity: | 2018
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 35 bps area (initial), Libor plus 30 bps area, plus or minus 5 bps (revised)
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $2 billion
|
| Maturity: | 2016
|
| Spread: | Treasuries plus 20 bps
|
| Price talk: | 40 bps area (initial), 25 bps area, plus or minus 5 bps (revised)
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $4 billion
|
| Maturity: | 2018
|
| Spread: | Treasuries plus 40 bps
|
| Price talk: | 55 bps area (initial), 45 bps area, plus or minus 5 bps (revised)
|
|
|
| 10-year notes
|
| Amount: | $5.5 billion
|
| Maturity: | 2023
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | 90 bps to 95 bps (initial), 80 bps area, plus or minus 5 bps (revised)
|
|
|
| 30-year notes
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| Amount: | $3 billion
|
| Maturity: | 2043
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | 115 bps to 120 bps (initial), 105 bps area, plus or minus 5 bps (revised)
|
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