By Sheri Kasprzak
New York, Jan. 25 - Adobe Systems Inc. priced a combined $1.5 billion of notes (Baa1/BBB+/) in two tranches on Monday, according to a term sheet.
Adobe sold $600 million of 3.25% five-year notes at 99.826 to yield 3.288%, or 93 basis points over Treasuries.
Adobe also sold a $900 million tranche of 4.75% 10-year notes at 99.387 to yield 4.828%, or 120 bps over Treasuries.
Both tranches of notes include at make-whole call at 15 bps over Treasuries.
According to a sellsider, both tranches of notes priced right in line with price talk.
The offering is the first bond sale for Adobe.
Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., Citigroup Global Markets Inc. and Wells Fargo Securities Inc. are the joint bookrunners.
The co-managers were BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Daiwa Securities America Inc., Mitsubishi UFJ Securities (USA) Inc. and RBS Securities Inc.
Proceeds will be used to repay debt related to the company's acquisition of Omniture Inc.
Adobe is a San Jose, Calif., computer software and services provider for businesses.
| Issuer: | Adobe Systems Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Morgan Stanley & Co., Citigroup Global Markets Inc., Wells Fargo Securities Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Daiwa Securities America Inc., Mitsubishi UFJ Securities (USA) Inc., RBS Securities Inc.
|
| Call: | Make-whole at 15 bps over Treasuries
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 1
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 1, 2015
|
| Coupon: | 3.25%
|
| Price: | 99.826
|
| Yield: | 3.288%
|
| Spread: | 93 bps over Treasuries
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Feb. 1, 2020
|
| Coupon: | 4.75%
|
| Price: | 99.387
|
| Yield: | 4.828%
|
| Spread: | 120 bps over Treasuries
|
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