Apple bonds offer decent concession at IPT stage

“Apple is offering new issue concessions of between 6bp to 15bp on its new seven-tranche dollar bond announced on Monday, its first jumbo offering since its debut USD17bn deal around a year ago,” John Balassi and Shankar Ramakrishnan report for IFR. “Goldman Sachs and Deutsche Bank are acting as lead bookrunners for the trade.”

“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,” Balassi and Ramakrishnan report. “According to investors, 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 15bp. The 30-year bonds are offering a smaller concession of around 6bp-11bp based on where the outstanding 3.85% May 2043 is trading at Treasuries plus 104bp, while the five-year bonds offer a roughly 11bp concession compared with the outstanding 1% May 2018s trading at a G spread of 39bp.”

Read more in the full article here.

Related articles:
Apple about to join the ranks of the biggest U.S. corporate debtors – April 29, 2014
Apple readies blockbuster $17 billion debt sale – April 28, 2014
Apple plans another massive debt sale to fuel new share repurchases, dividends – April 25, 2014


    1. You should get treatment for your ADD.

      People like you are part of the problem. All kinds of opinions with zero knowledge of the issues at hand.

      Advice: Don’t vote (if you even bother). More advice: RTFA if you want the answer to your question, it’s right in front of your ignorant face. The good news is that, while you might be lazy and riddled with ADD, at least you’re honest! 🙂

      So says First 2014, Then 2016 to those who offer opinions with zero knowledge.


    2. Funny

      I think it is a good comment because it is a meta comment; it is really about something outside the confines of the subject matter itself. That means it also has a faintly sardonic component, placing the observer safely outside the pit where snarling dogs fight over scraps of content.

      It is a comment about higher meanings, yet uttered humbly: ‘pretty sure’ is a humanising qualifier, far from the way-too-familiar moral tone of absolute and unshakable certainty that induces cringing in the unworthy—which is to say, anyone who disagrees.

    3. I dream of basis points when people quote xbp where x is a number for example 6.
      I also dream of people piling praise, money, wine, women and song after I have answered their conundrumszzzzzzzzzzz, snorrrrrrrrrrr, sleep bloggingzzzzzzz!!!!!

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