NEW YORK, April 29 (IFR) - Technology giant Apple has
tightened guidance on its seven-tranche US dollar bond by 10bp
to 20bp from initial price talk levels, reflecting strong demand
for the deal that was heard to be in excess of US$30bn by
The company looks set to pay little to no new issue
concession on the new bonds compared to where its outstanding
bonds are trading. With further scope for tightening, the new
bonds may even price inside of the existing debt - an
outstanding result for the company.
Price guidance on Apple's three-year fixed rate bonds is at
Treasuries plus 20bp area (+/- 2bp); 5-year fixed is at plus
40bp area (+/-2.5bp); 7-year fixed is at T+62.5bp area
(+/-2.5bp); 10-year fixed is at T+80bp area (+/-3bp); and the
30-year fixed at T+100bp (the number).
Apple's outstanding 2.4% May 2023s are quoted at a G-spread
of 75bp, suggesting the new issue concession on the 10-year is
around 5bp. The 30-year bonds are offering just 4bp of
concession, based on where the outstanding 3.85% May 2043 is
trading at Treasuries plus 104bp, while the five-year bonds
offer a roughly 1bp concession compared with the outstanding 1%
May 2018s trading at a G-spread of 39bp.
Guidance on the two floating-rate notes, with three and five
year maturities, is at Libor equivalent.
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(Reporting by IFR Credit Team; Editing by Natalie Harrison)