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BRADENTON/NEW YORK: Google Inc hit the U.S. bond market on Monday with its high grade market debut, announcing a $3 billion sale of 3-year, 5-year and 10-year notes that will take advantage of low borrowing rates.
Proceeds of the SEC-registered deal will be used to repay commercial paper and for general corporate purposes, the company said in a statement. Citigroup , Goldman Sachs and JP Morgan are joint lead managers on the deal, which garnered an Aa2 rating from Moody's Investors Service, the third-highest rating in the agency's scale.
Proceeds of the SEC-registered deal will be used to repay commercial paper and for general corporate purposes, the company said in a statement. Citigroup , Goldman Sachs and JP Morgan are joint lead managers on the deal, which garnered an Aa2 rating from Moody's Investors Service, the third-highest rating in the agency's scale.
Google is one of the few large-cap technology companies to actually have debt on its balance sheet -- albeit at about $2 billion of commercial paper, a tiny sum compared to its $169 billion market cap.
The company is the latest in a spate of new or rare technology company borrowers coming to the corporate bond market this year, as they look to take advantage of low interest rates and realize that having some debt makes sense.
"We are seeing some of the large cap tech companies deciding that having debt on the balance sheets is an appropriate way of having a capital structure and running a company, which is relatively new to them," said one banker.
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