Books on Apple seven-tranche bond approaching USD13bn -broker
NEW YORK, April 29 (IFR) - Books on Apple's seven-tranche dollar bond are approaching USD13bn, according to a broker.
The company is offering fixed rate notes carrying tenors of three-, five-, seven-, 10-, and 30-years and floating rate tranches with maturities of three- and five-year.
According to the broker, books on the 30-year and 10-year are over USD2.9bn and USD2.7bn respectively. Books on three-year, five-year and seven-year fixed rate tranches are around USD1.2bn, USD1.9bn and USD2.3bn respectively.
Based on initial price thoughts, Apple is offering new issue concessions of between 6bp to 15bp in what is its first jumbo offering since its debut USD17bn deal around a year ago.
Goldman Sachs and Deutsche Bank are acting as lead bookrunners for the trade, which will finance share repurchases and the payment of dividends after the company increased its authorised share buybacks by USD30bn to USD90bn by the end of 2015.
Some brokers are speculating the deal will be around USD8bn to USD10bn in size.
Apple said on its earnings call last week that it planned to be active in both the domestic and international bond markets during 2014 "for an amount of term debt financing similar to what we issued in 2013". (Reporting by Shankar Ramakrishnan, IFR Markets; Editing by Natalie Harrison)