By Aleesia Forni
Virginia Beach, Sept. 21 – Applied Materials Inc. was in Monday’s market with a $1.8 billion offering of senior notes (A3/A-) in tranches due 2020, 2025 and 2035, according to a market source.
A $600 million tranche of 2.625% notes due 2020 sold at 99.93 to yield 2.64%, or 115 basis points over Treasuries.
Also priced was $700 million of 3.9% notes due 2025 at Treasuries plus 175 bps. Pricing was at 99.638 to yield 3.944%.
Finally, the company priced $500 million of 5.1% notes due 2035 at 99.663 to yield 5.127%, or Treasuries plus 210 bps.
All tranches sold at the tight end of guidance.
Bookrunners are J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG and Goldman Sachs & Co.
Proceeds will be used to repay $400 million 2.65% senior notes due June 15, 2016 and for general corporate purposes.
Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.
| Issuer: | Applied Materials Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.8 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Goldman Sachs & Co.
|
| Trade date: | Sept. 21
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Oct. 1, 2020
|
| Coupon: | 2.625%
|
| Price: | 99.93
|
| Yield: | 2.64%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 3.9%
|
| Price: | 99.638
|
| Yield: | 3.944%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 20-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2035
|
| Coupon: | 5.1%
|
| Price: | 99.663
|
| Yield: | 5.127%
|
| Spread: | Treasuries plus 210 bps
|
| Price guidance: | Treasuries plus 215 bps area
|
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