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Google to Sell Its First Bond

Published on May 16, 2011
by Kellie Geressy-Nilsen

Google Inc. has launched its first-ever bond offering, seizing on near-record-low rates and insatiable appetite for corporate debt.

The world’s largest Internet search company said the $3 billion offering will include three-, five- and 10-year portions. It is expected to be sold later today via joint bookrunners Citigroup Inc., J.P. Morgan Chase & Co. and Goldman Sachs Group Inc.

The deal, which will be split evenly across three pieces of $1 billion each, was launched with a risk premium of 0.33 percentage point above Treasurys on the three-year piece; 0.43 percentage point on the five-year piece; and 0.58 percentage point on the 10-year piece. All three pieces were launched narrower than preliminary pricing guidance had suggested, indicating good demand from investors.

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