By Aleesia Forni
Virginia Beach, Feb. 2 – Apple Inc. sold an upsized $6.5 billion five-part offering of senior notes (Aa1/AA+/) on Monday, according to a source away from the trade.
There was a $500 million five-year floater priced at Libor plus 25 basis points.
The company also priced $1.25 billion of 1.55% five-year fixed-rate notes at 42 bps over Treasuries.
Pricing was at the tight end of talk, which was set in the 45 bps area over Treasuries.
A third tranche was $1.25 billion of 2.15% seven-year notes sold at 67 bps over Treasuries. The notes sold at the tight end of the Treasuries plus 70 bps area talk.
A $1.5 billion tranche of 2.5% 10-year notes sold at 85 bps over Treasuries. Pricing was in line with talk.
Finally, $2 billion of 3.45% 30-year bonds sold at 125 bps over Treasuries. The notes priced at the tight end of the Treasuries plus 125 bps to 128 bps talk.
Goldman Sachs & Co. and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes.
The computer and mobile communications device company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Issue: | Senior notes
|
| Amount: | $6.5 billion, upsized from $5 billion
|
| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc.
|
| Trade date: | Feb. 2
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA+
|
| Distribution: | SEC registered
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | Libor plus 25 bps
|
| Price talk: | Libor equivalent to five-year fixed-rate notes
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | 1.55%
|
| Spread: | 42 bps
|
| Price talk: | 45 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 9, 2022
|
| Coupon: | 2.15%
|
| Spread: | 67 bps
|
| Price talk: | 70 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 9, 2025
|
| Coupon: | 2.5%
|
| Spread: | 85 bps
|
| Price talk: | 85 bps area
|
|
|
| 30-year bonds
|
| Amount: | $2 billion
|
| Maturity: | Feb. 9, 2045
|
| Coupon: | 3.45%
|
| Spread: | 125 bps
|
| Price talk: | 125 bps to 128 bps
|
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