By Cristal Cody
Tupelo, Miss., Jan. 22 – Adobe Inc. priced $3.15 billion of fixed-rate notes (A2/A) in four tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 1.7% three-year notes priced at 99.863 to yield 1.747% and a spread of 22 basis points over Treasuries.
Initial talk was in the Treasuries plus 50 bps area.
Adobe sold $500 million of 1.9% five-year notes with a Treasuries plus 37 bps spread, compared to initial talk in the 60 bps spread area. The notes priced at 99.787 to yield 1.945%.
The company priced $850 million of 2.15% seven-year notes at 99.935 to yield 2.16% and a spread of 47 bps over Treasuries. The issue was initially talked to print with a spread in the 70 bps over Treasuries area.
In the final tranche, $1.3 billion of 2.3% 10-year notes priced at a Treasuries plus 57 bps spread. Initial guidance was in the 80 bps over Treasuries area. The notes priced at 99.699 to yield 2.334%.
BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repaying the company’s $900 million of outstanding 2020 senior notes and its term loan.
Adobe is a San Jose, Calif., computer software and services provider for businesses.
| Issuer: | Adobe Inc.
|
| Amount: | $3.15 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-manager: | SG Americas Securities, LLC
|
| Trade date: | Jan. 22
|
| Settlement date: | Feb. 3
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2023
|
| Coupon: | 1.7%
|
| Price: | 99.863
|
| Yield: | 1.747%
|
| Spread: | Treasuries plus 22 bps
|
| Call features: | Make-whole call at Treasuries plus 5 bps
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 50 bps area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 1.9%
|
| Price: | 99.787
|
| Yield: | 1.945%
|
| Spread: | Treasuries plus 37 bps
|
| Call features: | Make-whole call at Treasuries plus 7.5 bps; on or after one month before maturity at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 60 bps area
|
|
|
| Seven-year notes
|
| Amount: | $850 million
|
| Maturity: | Feb. 1, 2027
|
| Coupon: | 2.15%
|
| Price: | 99.935
|
| Yield: | 2.16%
|
| Spread: | Treasuries plus 47 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; on or after two months before maturity at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 70 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | Feb. 1, 2030
|
| Coupon: | 2.3%
|
| Price: | 99.699
|
| Yield: | 2.334%
|
| Spread: | Treasuries plus 57 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; on or after three months before maturity at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 80 bps area
|
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