“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.
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