By Devika Patel
Knoxville, Tenn., Nov. 7 – Apple Inc. priced $7 billion of notes (Aa1/AA+) in six tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $1 billion tranche of 1.8% two-year bonds sold with a 20 bps spread over Treasuries. Pricing was at 99.951 to yield 1.825%.
And $1 billion of 2% three-year bonds sold with a 30 bps spread over Treasuries. Pricing was at 99.916 to yield 2.029%.
There was $750 million of 2.4% five-year bonds sold with a 42 bps spread over Treasuries. Pricing was at 99.987 to yield 2.402%.
The company sold $1.5 billion of 2.75% seven-year bonds at 60 bps over Treasuries. Pricing was at 99.854 to yield 2.772%.
Apple priced $1.5 billion of 3% 10-year bonds with a 72 bps spread over Treasuries. Pricing was at 99.709 to yield 3.034%.
The company also sold $1.25 billion of 3.75% 30-year bonds sold with a 100 bps spread over Treasuries. Pricing was at 99.18 to yield 3.796%.
Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. 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., BofA Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Academy Securities, Inc., C.L. King & Associates, Inc., Loop Capital Markets LLC and Siebert Cisneros Shank & Co., LLC
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 13
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 13, 2019
|
| Coupon: | 1.8%
|
| Price: | 99.951
|
| Yield: | 1.825%
|
| Spread: | Treasuries plus 20 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | 2%
|
| Price: | 99.916
|
| Yield: | 2.029%
|
| Spread: | Treasuries plus 30 bps
|
| Call: | Make-whole call at Treasuries plus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 13, 2023
|
| Coupon: | 2.4%
|
| Price: | 99.987
|
| Yield: | 2.402%
|
| Spread: | Treasuries plus 42 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Dec. 13, 2022 and then a par call
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 13, 2025
|
| Coupon: | 2.75%
|
| Price: | 99.854
|
| Yield: | 2.772%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Nov. 13, 2024 and then a par call
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Nov. 13, 2027
|
| Coupon: | 3%
|
| Price: | 99.709
|
| Yield: | 3.034%
|
| Spread: | Treasuries plus 72 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps until Aug. 13, 2027 and then a par call
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 13, 2047
|
| Coupon: | 3.75%
|
| Price: | 99.18
|
| Yield: | 3.796%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until May 13, 2047 and then a par call
|
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