Apple Inc., International Business Machines Corp. and Texas Instruments Inc. led dollar-denominated bond sales of $43 billion in the busiest week this year for high-grade technology companies as relative yields narrowed.
Apple, the largest U.S. maker of smartphones, set a record for the biggest corporate bond sale ever with its $17 billion six-part offering on April 30, according to data compiled by Bloomberg. IBM raised $2.25 billion and Texas Instruments sold $1 billion, bringing the number of investment-grade technology issuers in the market to three, the highest this year.
Orders for the Apple sale totaled $52 billion, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. The Cupertino, California-based company sold its first bonds since 1996, issuing $3 billion of floating-rate notes and $14 billion of fixed-rate securities, Bloomberg data show.
“When treasurers get a chance to look back at what we’re experiencing today, and the coupons they’re achieving, they’ll say, ’Those were the good old days.’” Timothy Cox, executive director of debt capital markets at Mizuho Securities USA Inc. in New York, which helped sell the Texas Instruments bonds, said in a telephone interview. “We’re in the middle of it right now.”