Apple Launches $12 Billion Debt Offering: 30% Smaller Than Last Year's Bond Bonanza

Tyler Durden's picture

Despite explaining that the Apple debt offering would be of similar size as last year's epic $17 billion bond issue, the seven-part offering only managed to issue $12 billion. While still considerable in the world of corporate bond issuance, this is a notable drop for a firm that was so adamant about releveraging to turnover its cash to shareholders...

  • *APPLE TOTAL DEBT OFFERING SIZE $12B

The deal's longer-dated bonds came a little cheaper than last year's also at 10Y +77bps and 30Y +100bps and only 29% of the issue was long-dated (as opposed to 50% last year). We remind readers that following last year's huge deal, equity markets weakened notably in the weeks after (and it seems the rate-locks on today's issue are already being lifted in Treasury markets as rates fall).

 

Full 7-part-offering:

  • *APPLE $1.5B 3Y FIXED NOTES LAUNCH AT +18
    *APPLE $1B 3Y FRN LAUNCH AT 3ML+7
    *APPLE $2B 5Y FIXED NOTES LAUNCH AT +37.5
    *APPLE $1B 5Y FRN LAUNCH AT 3ML+30
    *APPLE $3B 7Y FIXED NOTES LAUNCH AT +60
    *APPLE $2.5B 10Y NOTES LAUNCH AT +77
    *APPLE $1B 30Y BONDS LAUNCH AT +100

Cheap - but not as cheap as last year's deal. Also of note is the fact that half of last year's issuance ($8.5bn of $17bn) was in 10 year bonds or longer maturity and only 29% this time ($3.5bn of $12bn).