Google parent company Alphabet (GOOGL) is wading back into the corporate bond market.
Media reports state that Alphabet plans to offer $4 billion of U.S. high-grade corporate bonds on April 28. The Silicon Valley-based technology giant is apparently looking to sell debt in as many as four parts. The longest dated debt instrument will be a 40-year bond that yields between one percentage point and 1.05 percentage point more than U.S. Treasuries issued by America’s federal government.
The bond sale marks Alphabet’s first since 2020 when it sold $10 billion of debt in six parts. Alphabet is also lining up its first ever Euro-denominated debt offering and is targeting as many as five European bonds with maturities as far out as 29 years.
Market Volatility
A 29-year bond in euros would be the second-longest corporate bond sold in Europe this year, behind Johnson & Johnson’s (JNJ) €1 billion (US$1.13 billion) 30-year tranche priced in February as part of a five-part transaction. Issuance of corporate bonds has dried up in recent weeks as global market volatility has surged.
However, Alphabet isn’t the only corporation that is getting back into the bond marker. Other companies that are looking to sell high-grade U.S. corporate bonds include Procter & Gamble (PG), the maker of Crest toothpaste, and U.S. homebuilder D.R. Horton (DHI). Dealers are anticipating around $35 billion of new bond sales in the U.S. over the coming week. GOOGL stock has declined 15% this year.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Moderate Buy rating among 39 Wall Street analysts. That rating is based on 29 Buy and 10 Hold recommendations issued in the last three months. The average GOOGL price target of $198.59 implies 23.87% upside from current levels.
