By Aleesia Forni
Virginia Beach, April 29 - Apple Inc. priced a $12 billion seven-part offering of senior notes (Aa1/AA+/) during the session on Tuesday, according to market sources.
The sale included $1 billion of floating-rate notes due 2017 priced at par to yield Libor plus 7 basis points.
A $1.5 billion tranche of 1.05% fixed-rate notes due 2017 priced at 18 bps over Treasuries, or 99.947 to yield 1.068%.
The notes sold at the tight end of the Treasuries plus 20 bps area talk.
A third tranche was $1 billion of five-year floating-rate notes priced at par to yield Libor plus 30 bps.
There was also a $2 billion tranche of 2.1% five-year notes sold at Treasuries plus 37.5 bps. The notes sold at 99.962 to yield 2.108%.
Pricing was at the tight end of talk, set in the area of Treasuries plus 40 bps.
A $3 billion tranche of 2.85% seven-year notes priced at 60 bps over Treasuries, at the tight end of the Treasuries plus 62.5 bps area talk. The notes sold at 99.754 to yield 2.889%.
The sale also included $2.5 billion of 10-year notes priced at Treasuries plus 77 bps, or 99.916 to yield 3.46%. The notes sold at the tight end of the Treasuries plus 80 bps area talk.
Finally, a $1 billion issue of 30-year bonds sold on top of talk at Treasuries plus 100 bps. Pricing was at 99.459 to yield 3.46%.
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.
| Issuer: | Apple Inc.
|
| Issue: | Senior notes
|
| Amount: | $12 billion
|
| Joint bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc.
|
| Trade date: | April 29
|
| Settlement date: | May 6
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | May 5, 2017
|
| Coupon: | Libor plus 7 bps
|
| Price: | Par
|
| Yield: | Libor plus 7 bps
|
| Price talk: | Libor equivalent of three-year notes
|
|
|
| Three-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 5, 2017
|
| Coupon: | 1.05%
|
| Price: | 99.947
|
| Yield: | 1.068%
|
| Spread: | Treasuries plus 18 bps
|
| Price talk: | Treasuries plus 20 bps area, tightened from Treasuries plus 30 bps area
|
|
|
| Five-year floaters
|
| Amount: | $1 billion
|
| Maturity: | May 6, 2019
|
| Coupon: | Libor plus 30 bps
|
| Price: | Par
|
| Yield: | Libor plus 30 bps
|
| Price talk: | Libor equivalent of five-year notes
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 6, 2019
|
| Coupon: | 2.1%
|
| Price: | 99.962
|
| Yield: | 2.108%
|
| Spread: | Treasuries plus 37.5 bps
|
| Price talk: | Treasuries plus 40 bps area, tightened from Treasuries plus 50 bps area
|
|
|
| Seven-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 6, 2021
|
| Coupon: | 2.85%
|
| Price: | 99.754
|
| Yield: | 2.889%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 62.5 bps area, tightened from Treasuries plus 75 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 6, 2024
|
| Coupon: | 3.45%
|
| Price: | 99.916
|
| Yield: | 3.46%
|
| Spread: | Treasuries plus 77 bps
|
| Price talk: | Treasuries plus 80 bps area, tightened from Treasuries plus 90 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | May 6, 2044
|
| Coupon: | 4.45%
|
| Price: | 99.459
|
| Yield: | 4.483%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 100 bps, tightened from Treasuries plus 115 bps-120 bps
|
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