Apple talks three-part add-on to senior notes; pricing Thursday

By Aleesia Forni

New York, March 17 – Apple Inc. is planning to price add-ons to three tranches of its existing senior notes (Aa1/AA+), according to a market source and a 424B2 filed with the Securities and Exchange Commission.

There is a planned add-on to the company’s 2.25% notes due Feb. 23, 2021 talked in the 70 basis points area over Treasuries.

The original $2.25 billion priced with a 105 bps spread over Treasuries.

A tranche of 3.25% bonds due Feb. 23, 2026 are talked in the area of 110 bps over Treasuries.

The $2 billion issue of 10-year notes originally with a spread of 150 bps over Treasuries.

And an add-on to the company’s 4.5% bonds due Feb. 23, 2036 is talked in the Treasuries plus 165 bps to 170 bps range.

The company issued the $1.25 billion 20-year bonds with a spread of Treasuries plus 190 bps.

All three tranches originally priced on Feb. 16.

Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc. 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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