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Alphabet plans twice-yearly US debt sales after February issuance
The company’s February bond sale saw notes trade wider than their issue levels, and its latest offering is being discussed in up to 10 maturities from two to 40 years.
Alphabet is telling investors it plans to hold US debt sales twice annually, according to LiveMint Markets, aiming to ease concerns about new tech debt supply hitting the market.
In the February sale, Alphabet’s investment grade bonds weakened during Thursday trading and were trading wider than where they priced, based on Trace data cited in the report. The company had also sold $20 billion of notes in February, with pricing in multiple currencies including Swiss francs, British pounds, euros, Canadian dollars and Japanese yen.
The latest potential deal comes as Alphabet looks to raise as much as $25 billion from its next US investment-grade offering, the report said. It is being positioned as a test of investor appetite for AI-related corporate debt following a July selloff, after a previous step-up in spending outlook contributed to renewed concerns.
Thursday’s offering is described as potentially comprising as many as 10 parts, with maturities ranging from two to 40 years, and initial price talk for the longest tenor at a premium of about 1.55 percentage points above Treasuries. The deal could involve spreads of up to 0.4 percentage point above existing Alphabet debt, a concession described as more generous than typical in the investment grade market as investor appetite softens.