By Aleesia Forni
Virginia Beach, Feb. 3 – Apple Inc. detailed its recently priced upsized $6.5 billion five-part sale of senior notes (Aa1/AA+/), according to a FWP filed with the Securities and Exchange Commission.
There was a $500 million five-year floater priced at par to yield Libor plus 25 basis points.
The company also priced $1.25 billion of 1.55% five-year notes at 42 bps over Treasuries. The notes priced at 99.78 to yield 1.596%.
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 99.981 to yield 2.153%, or 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 99.859 to yield 2.516%, or 85 bps over Treasuries. Pricing was in line with talk.
Finally, $2 billion of 3.45% 30-year bonds sold at 99.113 to yield 3.498%, or 125 bps over Treasuries. The notes priced at the tight end of the Treasuries plus 125 bps to 128 bps talk.
Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch 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., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Wells Fargo Securities, LLC, Samuel A. Ramirez & Co., Inc., Williams Capital Group LP
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 9
|
| 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: | Par
|
| Yield: | Libor plus 25 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | 1.55%
|
| Price: | 99.78
|
| Yield: | 1.596%
|
| Spread: | 42 bps
|
| Price talk: | 45 bps area
|
| Make-whole call: | 10 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 9, 2022
|
| Coupon: | 2.15%
|
| Price: | 99.981
|
| Yield: | 2.153%
|
| Spread: | 67 bps
|
| Price talk: | 70 bps area
|
| Make-whole call: | 10 bps
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 9, 2025
|
| Coupon: | 2.5%
|
| Price: | 99.859
|
| Yield: | 2.516%
|
| Spread: | 85 bps
|
| Price talk: | 85 bps area
|
| Make-whole call: | 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $2 billion
|
| Maturity: | Feb. 9, 2045
|
| Coupon: | 3.45%
|
| Price: | 99.113
|
| Yield: | 3.498%
|
| Spread: | 125 bps
|
| Price talk: | 125 bps to 128 bps
|
| Make-whole call: | 20 bps
|
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