Published on 3/28/2017 in the Prospect News Investment Grade Daily.
New Issue: Applied Materials prices $2.2 billion of 10-, 30-year senior notes
By Cristal Cody
Tupelo, Miss., March 28 – Applied Materials, Inc. priced $2.2 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.
The company sold $1.2 billion of 3.3% 10-year notes at 99.645 to yield 3.342%, or Treasuries plus 93 basis points.
Applied Materials priced $1 billion of 4.35% 30-year notes at 99.817 to yield 4.361%. The notes priced with a spread of 133 bps over Treasuries.
Both tranches priced on the tight side of guidance.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG and Goldman Sachs & Co. were the bookrunners.
Proceeds will be used to redeem or repay at maturity the company’s $200 million 7.125% senior notes due Oct. 15, 2017 and the balance for general corporate purposes.
Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.
| Issuer: | Applied Materials, Inc.
|
| Amount: | $2.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, MUFG and Goldman Sachs & Co.
|
| Co-managers: | BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | March 28
|
| Settlement date: | March 31
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | April 1, 2027
|
| Coupon: | 3.3%
|
| Price: | 99.645
|
| Yield: | 3.342%
|
| Spread: | Treasuries plus 93 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 2 bps
|
| Call features: | Make-whole call before Jan. 1, 2027 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
|
| Change-of-control put: | 101%
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 1, 2047
|
| Coupon: | 4.35%
|
| Price: | 99.817
|
| Yield: | 4.361%
|
| Spread: | Treasuries plus 133 bps
|
| Price guidance: | Treasuries plus 135 bps area, plus or minus 2 bps
|
| Call features: | Make-whole call before Oct. 1, 2046 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
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