Apple sets guidance for seven-tranche offering of senior notes

By Aleesia Forni

Virginia Beach, April 29 - Apple Inc. set price guidance on Tuesday for a planned seven-part offering of senior notes, according to a market source and a 424B2 filed with the Securities and Exchange Commission.

The deal is expected to include three-year notes guided in the Treasuries plus 30 basis points area, and a three-year floating-rate note guided at the Libor equivalent.

A five-year tranche of notes is being guided in the area of 50 bps over Treasuries, with a five-year tranche of floating-rate notes guided at the Libor equivalent.

The sale will also include notes due 2021 guided at the 75 bps over Treasuries area, notes due 2024 guided at the Treasuries plus 90 bps area and notes due 2044 guided at the Treasuries plus 115 bps area.

Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the joint bookrunners.

Proceeds will be used for general corporate purposes, including repurchases of the company's common stock and payment of dividends under its recently expanded program to return capital to shareholders.

Earlier this month, the company announced plans to increase its existing share repurchase program authorization to $90 billion from $60 billion and raised its cash dividend by approximately 8% to $3.29 per share of common stock, beginning with the dividend to be paid during the third quarter of 2014.

Apple last came to market with a $17 billion offering of notes priced in six tranches on April 30, 2013.

The computer and mobile communications device company is based in Cupertino, Calif.

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