Published on 4/1/2024 in the Prospect News Investment Grade Daily.
New Issue: Adobe prices $2 billion three-part offering of fixed-rate notes
By Wendy Van Sickle
Columbus, Ohio, April 1 – Adobe Inc. priced $2 billion of fixed-rate notes (A1/A+) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
Adobe sold $500 million of 4.85% three-year notes at 99.95 to yield 4.868% and a spread of 35 basis points over Treasuries.
The company priced $750 million of 4.8% five-year notes at 99.851 to yield 4.834% and a spread of 50 bps over Treasuries.
In the final tranche, $750 million of 4.95% 10-year notes priced at a Treasuries plus 65 bps spread. The notes priced at 99.805 to yield 4.975%.
BofA Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for working capital and general corporate purposes.
Adobe is a San Jose, Calif., computer software and services provider for businesses.
| Issuer: | Adobe Inc.
|
| Amount: | $2 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Cabrera Capital Markets LLC, CastleOak Securities, LP and Independence Point Securities LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Skadden, Arps, Slate, Meagher & Flom LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | April 1
|
| Settlement date: | April 4
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | April 4, 2027
|
| Coupon: | 4.85%
|
| Price: | 99.95
|
| Yield: | 4.868%
|
| Spread: | Treasuries plus 35 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; on or after one month before maturity at par
|
| Cusip: | 00724PAE9
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | April 4, 2029
|
| Coupon: | 4.8%
|
| Price: | 99.851
|
| Yield: | 4.834%
|
| Spread: | Treasuries plus 50 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; on or after one month before maturity at par
|
| Cusip: | 00724PAF6
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 4, 2034
|
| Coupon: | 4.95%
|
| Price: | 99.805
|
| Yield: | 4.975%
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; on or after three months before maturity at par
|
| Cusip: | 00724PAG4
|
|
|
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