By Aleesia Forni
New York, March 17 – Apple Inc. priced $3.5 billion of add-ons to three tranches of its existing senior notes (Aa1/AA+) during Thursday’s session, according to a market source.
There was a $750 million add-on to the company’s 2.25% notes due Feb. 23, 2021 sold at Treasuries plus 55 basis points.
The notes were guided in the 55 bps to 58 bps range over Treasuries and talked in the 70 basis points area over Treasuries.
A $1.25 billion tranche of 3.25% bonds due Feb. 23, 2026 sold at 100 bps over Treasuries after being guided in the 100 bps to 103 bps range over Treasuries.
The notes were initially talked in the area of 110 bps over Treasuries.
And a $1.5 billion add-on to the company’s 4.5% bonds due Feb. 23, 2036 priced with a spread of Treasuries plus 155 bps.
The notes were guided in the Treasuries plus 155 bps to 158 bps range, inside initial talk in the Treasuries plus 165 bps to 170 bps range.
All three tranches originally priced on Feb. 16.
Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were 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.
| Issuer: | Apple Inc.
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| Issue: | Senior notes
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| Amount: | $3.5 billion
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| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
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| Trade date: | March 17
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| Ratings: | Moody’s: Aa1
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| Standard & Poor’s: AA+
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| Distribution: | SEC registered
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| Five-year notes
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| Amount: | $750 million
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| Maturity: | Feb. 23, 2021
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| Coupon: | 2.25%
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| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 55 bps to 58 bps, tightened from Treasuries plus 70 bps area
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| Total issue size: | $3 billion, including $2.25 billion priced at 105 bps over Treasuries on Feb. 16
|
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| Ten-year notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 23, 2026
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| Coupon: | 3.25%
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| Spread: | Treasuries plus 100 bps
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| Price guidance: | Treasuries plus 100 bps to 103 bps, tightened from Treasuries plus 110 bps area
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| Total issue size: | $3.25 billion, including $2 billion priced at 150 bps over Treasuries on Feb. 16
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| Twenty-year notes
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| Amount: | $1.5 billion
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| Maturity: | Feb. 23, 2036
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| Coupon: | 4.5%
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| Spread: | Treasuries plus 155 bps
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| Price guidance: | Treasuries plus 155 bps to 158 bps, tightened from Treasuries plus 165 bps to 170 bps
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| Total issue size: | $2.75 billion, including $1.25 billion priced at Treasuries plus 190 bps on Feb. 16
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