By Cristal Cody
Tupelo, Miss., May 26 – Applied Materials, Inc. priced $1.5 billion of senior notes (A3/A-) in two tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $750 million offering of 1.75% 10-year notes priced at 99.617 to yield 1.792%, or a spread of Treasuries plus 110 basis points.
The 10-year tranche was guided in the Treasuries plus 150 bps area.
Applied Materials priced $750 million of 2.75% 30-year notes at 99.533 to yield 2.773%, or Treasuries plus 135 bps.
The 30-year tranche was talked at the 175 bps spread area.
BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc., MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem or repay at maturity the company’s $600 million 2.625% senior notes due Oct. 1, 2020 and its $750 million 4.3% senior notes due June 15, 2021 and for general corporate purposes.
Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.
| Issuer: | Applied Materials, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc., MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, ICBC Standard Bank plc and KeyBanc Capital Markets Inc.
|
| Trade date: | May 26
|
| Settlement date: | May 29
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | June 1, 2030
|
| Coupon: | 1.75%
|
| Price: | 99.617
|
| Yield: | 1.792%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before March 1, 2030 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 150 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | June 1, 2050
|
| Coupon: | 2.75%
|
| Price: | 99.533
|
| Yield: | 2.773%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call before Dec. 1, 2049 at price equal to greater of par and Treasuries plus 25 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 175 bps area
|
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