New Issue: Adobe prices upsized $1 billion 3.25% 10-year notes at Treasuries plus 155 bps

By Aleesia Forni

Virginia Beach, Jan. 21 – Adobe Systems Inc. priced an upsized $1 billion offering of 10-year senior notes (Baa1/A-/) on Wednesday at Treasuries plus 155 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at the tight end of talk, which was set in the 160 bps area over Treasuries.

The issue was upsized from $750 million.

Pricing was at 98.928 to yield 3.377%.

BofA Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, which include repaying $600 million of Adobe’s 3.25% senior notes due 2015.

Adobe is a San Jose, Calif., computer software and services provider for businesses.

Issuer:	Adobe Systems Inc.
Amount:	$1 billion, upsized from $750 million
Description:	Senior notes
Maturity:	Feb. 1, 2025
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, RBS Securities Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
Co-managers:	Citigroup Global Markets Inc., HSBC Securities (USA) Inc., MUFG, SMBC Nikko Securities America, Inc.
Coupon:	3.25%
Price:	98.928
Yield:	3.377%
Spread:	Treasuries plus 155 bps
Make-whole call:	25 bps prior to Nov. 1, 2024, then callable at par
Trade date:	Jan. 21
Settlement date:	Jan. 26
Ratings:	Moody’s: Baa1
	Standard & Poor’s: A-
Distribution:	SEC registered
Price talk:	160 bps area, tightened from 180 bps area

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