Published on 2/3/2017 in the Prospect News Investment Grade Daily.
New Issue: Apple prices $10 billion notes in nine fixed-, floating-rate tranches
By Cristal Cody
Tupelo, Miss., Feb. 3 – Apple Inc. priced $10 billion of senior notes (Aa1/AA+) in a nine-tranche offering on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of two-year floating-rate notes at par to yield Libor plus 8 basis points.
Apple priced $500 million of 1.55% two-year notes at 99.924 to yield 1.589%, or Treasuries plus 38 bps.
Apple priced $500 million of three-year floating-rate notes at par to yield Libor plus 20 bps.
The $1 billion tranche of 1.9% three-year fixed-rate notes priced at 99.951 to yield 1.917%, or Treasuries plus 45 bps.
The company priced $1 billion of five-year floating-rate notes at par to yield Libor plus 50 bps.
Apple sold $1.5 billion of 2.5% five-year notes at 99.995 to yield 2.501%. The notes priced with a spread of 58 bps over Treasuries.
The $1.75 billion 3% seven-year tranche priced at 99.956 to yield 3.007%, or Treasuries plus 75 bps.
Apple priced $2.25 billion of 3.35% 10-year notes at par to yield Treasuries plus 88 bps.
The company placed $1 billion of 4.25% 30-year notes at 99.798 to yield 4.262%, or a 115 bps spread over Treasuries.
Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.
Proceeds will be used for general corporate purposes, including stock repurchases and dividend payments, working capital, capital expenditures, acquisitions and debt repayment.
The computer, mobile communication and media devices company is based in Cupertino, Calif.
| Issuer: | Apple Inc.
|
| Amount: | $10 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | Barclays, Wells Fargo Securities, LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Standard Chartered Bank, Academy Securities, Inc., CastleOak Securities, LP, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Feb. 8, 2019
|
| Coupon: | Libor plus 8 bps
|
| Price: | Par
|
| Yield: | Libor plus 8 bps
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 8, 2019
|
| Coupon: | 1.55%
|
| Price: | 99.924
|
| Yield: | 1.589%
|
| Spread: | Treasuries plus 38 bps
|
| Call feature: | Make-whole call before maturity at greater of par or Treasuries plus 5 bps
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 7, 2020
|
| Coupon: | 1.9%
|
| Price: | 99.951
|
| Yield: | 1.917%
|
| Spread: | Treasuries plus 45 bps
|
| Call feature: | Make-whole call before maturity at greater of par or Treasuries plus 7.5 bps
|
|
|
| Five-year floaters
|
| Amount: | $1 billion
|
| Maturity: | Feb. 9, 2022
|
| Coupon: | Libor plus 50 bps
|
| Price: | Par
|
| Yield: | Libor plus 50 bps
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 9, 2022
|
| Coupon: | 2.5%
|
| Price: | 99.995
|
| Yield: | 2.501%
|
| Spread: | Treasuries plus 58 bps
|
| Call features: | Before Jan. 9, 2022, make-whole call at greater of par or Treasuries plus 10 bps; on or after Jan. 9, 2022 at par
|
|
|
| Seven-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 9, 2024
|
| Coupon: | 3%
|
| Price: | 99.956
|
| Yield: | 3.007%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | Before Dec. 9 2023, make-whole call at greater of par or Treasuries plus 12.5 bps; on or after Dec. 9, 2023 at par
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Feb. 9, 2027
|
| Coupon: | 3.35%
|
| Price: | Par
|
| Yield: | 3.35%
|
| Spread: | Treasuries plus 88 bps
|
| Call features: | Before Nov. 9, 2026, make-whole call at greater of par or Treasuries plus 12.5 bps; on or after Nov. 9, 2026 at par
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 9, 2047
|
| Coupon: | 4.25%
|
| Price: | 99.798
|
| Yield: | 4.262%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Before Aug. 9, 2046, make-whole call at greater of par or Treasuries plus 20 bps; on or after Aug. 9, 2046 at par
|
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