RPT-Apple sets initial price talk on seven-tranche bond deal

Tue Apr 29, 2014 8:30am EDT

(Repeats with more codes)

By John Balassi

NEW YORK, April 29 (IFR) - Apple mandated Goldman Sachs and Deutsche Bank on Tuesday for a seven-tranche dollar-denominated benchmark bond.

Initial price talk has been set at Treasuries plus 30bp area for the three-year fixed, Treasuries plus 50bp area on the five-year fixed, Treasuries plus 75bp area on the seven-year fixed, Treasuries plus 90bp area on the 10-year fixed and Treasuries plus 115-120bp on the 30-year fixed.

Price talk on the two floating rate notes, with three and five year maturities, is at Libor equivalent.

Apple is planning to raise at least as much as the USD17bn it sold a year ago, but it is possible that giant asset managers could persuade it to double that amount and do a Verizon-style mega-deal that is generously priced.

The company said on its earnings call last week: "we plan 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 John Balassi; Editing by Natalie Harrison)