Published on 9/5/2019 in the Prospect News Investment Grade Daily.
New Issue: Apple sells $7 billion of senior notes in five tranches
By Devika Patel
Knoxville, Tenn., Sept. 5 – Apple Inc. priced $7 billion of fixed-rate senior notes (Aa1/AA+) in five tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1 billion of 1.7% three-year notes at a spread of Treasuries plus 35 basis points. These notes priced at 99.983 to yield 1.706%.
Apple priced $750 million of 1.8% five-year notes with a 53 bps over Treasuries spread. These notes priced at 99.772 to yield 1.848%.
The $2 billion tranche of 2.05% seven-year notes was placed at a spread of 68 bps over Treasuries. These notes priced at 99.831 to yield 2.076%.
In the 10-year tranche, Apple priced $1.75 billion of 2.2% notes with a spread of Treasuries plus 78 bps. These notes priced at 99.608 to yield 2.244%.
The final $1.5 billion tranche of 2.95% notes was sold with a spread of 103 bps over Treasuries. These notes priced at 99.27 to yield 2.987%.
Goldman Sachs & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., Barclays and Wells Fargo Securities 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.
|
| Amount: | $7 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., Barclays and Wells Fargo Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, CastleOak Securities, LP, Drexel Hamilton, LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Sept. 4
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody’s: Aa1
|
| S&P: AA+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 11, 2022
|
| Coupon: | 1.7%
|
| Price: | 99.983
|
| Yield: | 1.706%
|
| Spread: | Treasuries plus 35 bps
|
| Call feature: | Make-whole call at Treasuries plus 12.5 bps
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 11, 2024
|
| Coupon: | 1.8%
|
| Price: | 99.772
|
| Yield: | 1.848%
|
| Spread: | Treasuries plus 53 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until Nov. 1, 2022, then a par call
|
|
|
| Seven-year notes
|
| Amount: | $2 billion
|
| Maturity: | Sept. 11, 2026
|
| Coupon: | 2.05%
|
| Price: | 99.831
|
| Yield: | 2.076%
|
| Spread: | Treasuries plus 68 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Oct. 1, 2024, then a par call
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Sept. 11, 2029
|
| Coupon: | 2.2%
|
| Price: | 99.608
|
| Yield: | 2.244%
|
| Spread: | Treasuries plus 78 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Sept. 1, 2027, then a par call
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Sept. 11, 2049
|
| Coupon: | 2.95%
|
| Price: | 99.27
|
| Yield: | 2.987%
|
| Spread: | Treasuries plus 103 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until June 1, 2047, then a par call
|
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