Apple talks benchmark seven-tranche offering of senior notes; pricing expected Wednesday

By Aleesia Forni

Virginia Beach, May 6 – Apple Inc. is planning a benchmark seven-part offering of senior notes (Aa1/AA+/) on Wednesday, according to an informed source and a 424B2 filed with the Securities and Exchange Commission.

The deal is expected to include fixed- and floating-rate notes due 2017 and 2020, as well as fixed-rate notes due 2022, 2025 and 2045.

The two-year floating-rate notes are talked in the 15 basis points area over Libor, and the two-year fixed-rate notes are talked at the Treasuries plus 40 bps area.

The five-year floaters are talked at Libor plus 35 bps to 40 bps, while the five-year fixed-rate notes are talked in the range of Treasuries plus 50 bps to 55 bps.

Talk is set in the Treasuries plus 85 bps area for the seven-year notes, Treasuries plus 110 bps area for the 10-year notes and 150 bps area over Treasuries for the 30-year bonds.

Goldman Sachs & Co., BofA Merrill Lynch and J.P. Morgan Securities LLC are the joint bookrunners.

Proceeds will be used for general corporate purposes, including repurchases of common stock and payment of dividends under the company’s recently expanded program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt.

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

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