Stories
Slash Boxes
Comments

SoylentNews is people

Apple Plans $10 Billion Bond Sale to Boost U.S. Cash Pile

posted by Fnord666 on Friday February 03 2017, @12:19PM   Printer-friendly
from the a-slice-of-the-apple-pie dept.

n1 writes:

Apple is selling $10 billion of notes in its first trip to the bond market in six months, becoming the second cash-rich technology company to sell debt this week despite prospects of a U.S. repatriation-tax holiday.

The iPhone maker may sell debt in as many as nine parts with up to six different maturities, according to a regulatory filing. The longest portion may be a 30-year bond. Apple (AAPL) will use proceeds for general corporate purposes, which can include share buybacks and capital spending. Microsoft sold $17 billion of bonds earlier in the week, capping the busiest month for U.S. investment-grade corporate issuance ever.

Apple has become a bond market regular in recent years, selling debt at least annually since 2013. Though its debt load has grown, its $246 billion cash pile means the company can maintain credit ratings that are just one step below the top grade.

[...] The $1 billion, 30-year bond may yield about 1.15 percentage points more than Treasuries with similar maturities, according to a person familiar with the matter, who asked not to be named because the deal is private. That's down from initial discussions of around 1.4 percentage points. Goldman Sachs (GS), Deutsche Bank (DB) and JPMorgan (JPM) are managing the sale.

Source: Investor's Business Daily

Original Submission

 
This discussion has been archived. No new comments can be posted.
Apple Plans $10 Billion Bond Sale to Boost U.S. Cash Pile | Log In/Create an Account | Top | 9 comments | Search Discussion
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.

  • (Score: 0) by Anonymous Coward on Friday February 03 2017, @03:28PM

    by Anonymous Coward on Friday February 03 2017, @03:28PM (#462415)

    If that's the reason they should have waited. Cutting the corporate tax is top priority for President Trump.

    With all that Congress has to work on, do they really have to make the weakening of the Independent Ethics Watchdog, as unfair as it may be, their number one act and priority. Focus on tax reform, healthcare and so many other things of far greater importance! #DTS

  • (Score: 2) by bob_super on Friday February 03 2017, @06:16PM

    by bob_super (1357) on Friday February 03 2017, @06:16PM (#462514)

    It doesn't matter how much Trump cuts the taxes. Some companies may bring back a little amount of cash to please the Dictator, but the rest will stay safely abroad.

    Apple's money outside the US is taxed at an infinitesimal rate (sub-0.1%). Why would they bring it back to a place where their placements'returns are taxed, even as low as 10%? Would you?

    • (Score: 0) by Anonymous Coward on Friday February 03 2017, @07:22PM

      by Anonymous Coward on Friday February 03 2017, @07:22PM (#462540)

      I'll bring in my money and open factories in Michigan, Ohio and Wisconsin. You'll waive the tax and start a trade war with South Korea. Shake on it?