By Devika Patel
Knoxville, Tenn., Sept. 6 – Apple Inc. priced $5 billion of notes (Aa1/AA+) in four tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
There was $1 billion of 1.5% two-year bonds sold with a 25 bps spread over Treasuries. Pricing was at 99.914 to yield 1.544%.
The company sold $1 billion of 2.1% five-year bonds sold with a 48 bps spread over Treasuries. Pricing was at 99.882 to yield 2.125%.
Apple priced $2 billion of 2.9% 10-year bonds sold with an 85 bps spread over Treasuries. Pricing was at 99.888 to yield 2.913%.
The company also sold $1 billion of 3.75% 30-year bonds sold with an 110 bps spread over Treasuries. Pricing was at 99.429 to yield 3.782%.
Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used 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: | $5 billion
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Wells Fargo Securities LLC, Blaylock Robert Van, LLC, CastleOak Securities LP, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 12
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 12, 2019
|
| Coupon: | 1.5%
|
| Price: | 99.914
|
| Yield: | 1.544%
|
| Spread: | Treasuries plus 25 bps
|
| Call: | Make-whole call at Treasuries plus 3 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 12, 2022
|
| Coupon: | 2.1%
|
| Price: | 99.822
|
| Yield: | 2.125%
|
| Spread: | Treasuries plus 48 bps
|
| Call: | Make-whole call at Treasuries plus 7.5 bps until Aug. 12, 2022 and then a par call
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | Sept. 12, 2027
|
| Coupon: | 2.9%
|
| Price: | 99.888
|
| Yield: | 2.913%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until June 12, 2027 and then a par call
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 12, 2047
|
| Coupon: | 3.75%
|
| Price: | 99.429
|
| Yield: | 3.782%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole call at Treasuries plus 17.5 bps until March 12, 2047 and then a par call
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
