By Devika Patel
Knoxville, Tenn., May 5 – Apple Inc. priced $7 billion of notes (Aa1/AA+) in six tranches on Thursday, according to an FWP filed Friday with the Securities and Exchange Commission.
A $500 million tranche of three-year floaters sold at par to yield Libor plus 7 basis points.
And $750 million of five-year floaters sold at par to yield Libor plus 35 bps.
There was $1 billion of 1.8% three-year bonds sold with a 33 bps spread over Treasuries. Pricing was at 99.898 to yield 1.835%.
The company sold $1 billion of 2.3% five-year bonds at 45 bps over Treasuries. Pricing was at 99.822 to yield 2.338%.
Apple priced $1.75 billion of 2.85% seven-year bonds with a 70 bps spread over Treasuries. Pricing was at 99.905 to yield 2.865%.
The company also sold $2 billion of 3.2% 10-year bonds at par with an 85 bps spread over Treasuries.
Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC 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.
|
| Issue: | Notes
|
| Amount: | $7 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., MUFG, Loop Capital Markets LLC, Mischler Financial Group, Inc., Siebert Cisneros Shank & Co., LLC and Williams Capital Group LP
|
| Trade date: | May 4
|
| Settlement date: | May 11
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | May 11, 2020
|
| Coupon: | Libor plus 7 bps
|
| Price: | Par
|
| Yield: | Libor plus 7 bps
|
|
|
| Five-year floaters
|
| Amount: | $750 million
|
| Maturity: | May 11, 2022
|
| Coupon: | Libor plus 35 bps
|
| Price: | Par
|
| Yield: | Libor plus 35 bps
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 11, 2020
|
| Coupon: | 1.8%
|
| Price: | 99.898
|
| Yield: | 1.835%
|
| Spread: | Treasuries plus 33 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 11, 2022
|
| Coupon: | 2.3%
|
| Price: | 99.822
|
| Yield: | 2.338%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until April 11, 2022 and then a par call
|
|
|
| Seven-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 11, 2024
|
| Coupon: | 2.85%
|
| Price: | 99.905
|
| Yield: | 2.865%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps until March 11, 2024 and then a par call
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 11, 2027
|
| Coupon: | 3.2%
|
| Price: | Par
|
| Yield: | 3.2%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 11, 2027 and then a par call
|
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