Orders pour in for Apple’s $12 billion bond offering

“Investors rushed on Tuesday to get a piece of Apple’s new US$12bn seven-part bond deal, just the company’s second foray into the US bond market,” Shankar Ramakrishnan reports for IFR.

“More than US$40bn of orders were heard to have poured into the trade at midday, though sources said final books were closer to US$35bn as spread levels tightened during bookbuilding,” Ramakrishnan reports. “Apple, which had initially been targeting US$8bn-US$10bn, will price the trade later on Tuesday.”

“The strong demand for double A rated company’s offering has allowed the deal to price inside its outstanding bonds, which is a market coup for the technology giant,” Ramakrishnan reports. “Apple is selling three-, five-, seven- and 10-year fixed rate notes along with three- and five-year floaters. With demand heavy across all tranches, the leads tightened price guidance on the deal from 10bp to 20bp.”

“‘The company is likely to do euros and sterling as it attempts to get around restrictions in repatriating cash from offshore,’ said Jens Vanbrabant of ECM Asset Management,” Ramakrishnan reports. “‘Apple has the biggest market capitalisation of any company in the world. It’s a safe name, and will give investors an opportunity to buy a large liquid deal at a time when there are still strong inflows and no liquidity in secondary markets,’ [Vanbrabant said].”

Read more in the full article here.

MacDailyNews Take: No matter what Apple makes, they just line up in droves!

Related articles:
Apple debt offering only $12 billion – April 29, 2014
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. In my dreams, I read that odour’s had poured into Apple’s $12 billion offering!
    Goes to show that one cannot read too much into one’s dreamszzzzzzz, Snorrrrrrr, sleep bloggingzzzzzzz!!!

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