Breaking News from CNBC's Kayla Tausche: Final Book For Apple Bond Deal Was $52 Billion
When: Today, Tuesday, April 30th
Where: CNBC's "Fast Money"
Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche. All references must be sourced to CNBC.
KAYLA TAUSCHE: WELCOME BACK TO FAST MONEY, I'M KAYLA TAUSCHE AT THE BREAKING NEWS DESK WHERE WE ARE JUST GETTING A LITTLE MORE ABOUT THIS APPLE BOND TERM SHEET. OF COURSE, IT IS A SIX PART OFFER, SEVENTEEN BILLION DOLLARS, I WANT TO TALK YOU THROUGH JUST A COUPLE OF THE HIGH LEVEL TAKEAWAYS ESPECIALLY WITH REGARD TO PRICE. EXTREMELY LOW INTEREST RATES AS WE EXPECTED THE THREE YEAR FIXED IS COMING IN WITH A COUPON OF .45 PERCENT. THE FIVE YEAR ONE PERCENT, THE 10 YEAR 2.40 PERCENT, THE 30 YEAR 3.85 PERCENT ON THAT BOND. ALL OF THESE ARE PRICING JUST SLIGHTLY BELOW PAR A VERY, VERY TINY DISCOUNT. THERE ARE ALSO TWO FLOATING RATE NOTES, WHICH WILL FLOAT ALONG SIDE THREE MONTH LIBOR AND THEY WILL PRICE AT PAR. I WANT TO TELL YOU A FEW INTERESTING THINGS ABOUT THIS BOOK THAT I'M GETTING FROM A SOURCE, THE FINAL BOOK $52 BILLION MULTIPLE TIMES OVER SUBSCRIBED FOR THE SEVENTEEN BILLION THAT APPLE ACTUALLY WANTED TO ISSUE. I'M ALSO TOLD THE INTERNATIONAL DEMAND WAS HIGHER THAN EXPECTED DUE TO THE LACK OF ISSUANCE OVERSEAS FROM NON-U.S. CORPORATES. THE INTERNATIONAL COMPONENT OF THE BOOK ENDED UP BEING AS HIGH AS 20 PERCENT WHICH I'M TOLD IS OUTSIZED. NOW WE KNOW WHY DEUTSCHE BANK WAS ONE OF THE UNDERWRITERS ON THIS DEAL. A LOT OF PEOPLE WERE SAYING GOLDMAN HAS STRONG RELATIONSHIP TIES TO APPLE. DEUTSCHE BANK IN THIS SMALL SYNDICATE IS VERY INTERESTING TO SEE BUT OF COURSE THAT INTERNATIONAL COMPONENT IS HUGE THERE. AND ALSO INTERESTING TO NOTE THAT THERE IS A FLOATING RATE COMPONENT. I'M TOLD THAT THAT MADE THIS DEAL AN EASIER SELL THAT INVESTORS ARE HIGHER IN TUNE WITH THE EXPECTATION THAT INTEREST RATES WILL RISE THROUGHOUT THIS YEAR AND SO HAVING TWO BONDS IN THERE, A THREE YEAR AND A FIVE YEAR, THAT WILL FLOAT ALONG WITH INTEREST RATES MADE THIS A VERY EASY SELL, MELISSA. OF COURSE WE ARE GOING TO DIG THROUGH THIS AS WE GET MORE BUT THAT'S THE HIGH LEVEL TAKE AWAY FROM THE APPLE BOND ISSUANCE.
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