Apple plans $5 billion bond offering to fund share buybacks, dividends [u]

Posted:
in AAPL Investors edited February 2015
Apple on Monday disclosed to the U.S. Securities and Exchange Commission that it is gearing up to sell another $5 billion in debt through a new bond offering.




Update: The sale rose to $6.5 billion, with a 10-year round fetching 2.5 percent and a 30-year round bringing 3.5 percent.

Apple's impending bond sale was filed with the SEC, though rates and amounts listed in the document remain blank. However, the actual sale will be for $5 billion in new debt, according to the Associated Press.

As with past bond sales, it's likely that Apple will use the money to help fund its capital reinvestment program, which includes a quarterly dividend to shareholders, as well as a share buyback effort.

Apple's latest bond offering comes after the company disclosed it had a massive $178 billion in cash as of the end of the December quarter.

The bond sale will be handled by both Goldman, Sachs & Co. and Deutsche Bank Securities. The offering comes as the U.S. bond market is at multi-year lows, with the 30-year bond currently at a record low.

Apple issued a $17 billion six-part bond offering in 2013, which at the time was the largest ever for a U.S. corporate offering. The company then offered another $12 billion bond sale in 2014, before its first-ever bond offering in euros late last year.
«1

Comments

  • Reply 1 of 36
    MacProMacPro Posts: 18,367member
    The name's Bond ... Apple Bond.
  • Reply 2 of 36
    I understand this will be a floating rate bond, which is why the percentage rates are blank.
  • Reply 3 of 36
    Originally Posted by digitalclips View Post

    The name's Bond ... Apple Bond.

     

    Theme song: remixes of Apple Bottom Jeans

    Drink: Appletini–stirred, not shaken, because that would void the warranty

    Attire: Black mock turtleneck and blue jeans. Shorts when he’s undercover.

    Weapon of choice: Walther aPPle

  • Reply 4 of 36
    MacProMacPro Posts: 18,367member
    Theme song: remixes of Apple Bottom Jeans
    Drink: Appletini–stirred, not shaken, because that would void the warranty
    Attire: Black mock turtleneck and blue jeans. Shorts when he’s undercover.
    Weapon of choice: Walther aPPle

    LOL

    I could not resist that crack having just watched on Netflix the entire 'The Man Who Would Be Bond', the Ian Fleming story. Very enjoyable I must say.
  • Reply 5 of 36
    Quote:



    Originally Posted by Tallest Skil View Post

     

     

    Theme song: remixes of Apple Bottom Jeans

    Drink: Appletini–stirred, not shaken, because that would void the warranty

    Attire: Black mock turtleneck and blue jeans. Shorts when he’s undercover.

    Weapon of choice: Walther aPPle




    Bond Girl: Apple Pie

    Villain: Google Finger

  • Reply 6 of 36
    I'm glad to have Apple's capital reinvestment program.

    Question: If Apple has $178 B in cash, why do they need to borrow via bonds? Isn't Apple using the cash-on-hand to fund this reinvestment program? (I'm sure there's an answer, so this is just for my education.)
  • Reply 7 of 36

    Speaking of that cash hoard, I saw a report that Obama plans to propose an immediate 14% haircut on overseas cash holdings, even if they're not moved back to the US. It's clear who the main target would be.

  • Reply 8 of 36
    If Apple has $178 B in cash, why do they need to borrow using bonds?
  • Reply 9 of 36
    MacProMacPro Posts: 18,367member
    Speaking of that cash hoard, I saw a report that Obama plans to propose an immediate 14% haircut on overseas cash holdings, even if they're not moved back to the US. It's clear who the main target would be.

    I saw that too. So does that mean Apple can move it back at 14%? If so that's not so bad is it?
  • Reply 10 of 36
    MacProMacPro Posts: 18,367member
    hngfr wrote: »

    Bond Girl: Apple Pie
    Villain: Google Finger

    Not sure 'Finger' is even needed there ... :D
  • Reply 11 of 36
    I saw that too. So does that mean Apple can move it back at 14%? If so that's not so bad is it?

    No, worse. They'd just demand 14% and it would still be subjected to taxes if they brought it back.
  • Reply 12 of 36
    dasanman69dasanman69 Posts: 12,985member
    hngfr wrote: »

    Bond Girl: Apple Pie
    Villain: Google Finger

    Samsung as Copy Galore
  • Reply 13 of 36
    Speaking of that cash hoard, I saw a report that Obama plans to propose an immediate 14% haircut on overseas cash holdings, even if they're not moved back to the US. It's clear who the main target would be.

    Obama is a lame duck. He'll get absolutely nothing. He's trolling Congress.
  • Reply 14 of 36
    asdasdasdasd Posts: 5,317member

    This is where all that QE is going. Great.

  • Reply 15 of 36
    I saw that too. So does that mean Apple can move it back at 14%? If so that's not so bad is it?

    The Boxer-Paul proposal calls for 6.5%, which makes a lot more sense. Also, it needs to be said that presidents don't write laws. Congress writes the laws.
  • Reply 16 of 36
    The Boxer-Paul proposal calls for 6.5%, which makes a lot more sense. Also, it needs to be said that presidents don't write laws. Congress writes the laws.

    Should probably change write to past tense.
  • Reply 17 of 36
    asdasd wrote: »
    This is where all that QE is going. Great.

    The QE all went to the banking buddies of this administration.
  • Reply 18 of 36
    Originally Posted by hngfr View Post

    Bond Girl: Apple Pie

    Villain: Google Finger


     

    I’d’ve said ‘Apple Turnover’. It’s at least marginally sexual.

     

    Or maybe ‘pie’ is and I’m missing something.

     

    Q is just J (jony), Moneypenny is Moneybenjamin (since Apple’s filthy, stinking rich)…

  • Reply 19 of 36
    Quote:
    Originally Posted by TheWhiteFalcon View Post





    No, worse. They'd just demand 14% and it would still be subjected to taxes if they brought it back.

    It's 14% for foreign earnings, 19% for if it's brought back (5% net addition for bringing it back) and minus taxes already paid abroad, of course, but it's unlikely much tax was paid abroad anyway.

     

    Then again it's a proposal and thus only a starting point for negotiations and therefore hardly final law.  Lots of companies make noises about not liking it, but they like parking money abroad and uncertainty even less.  There's room for negotiation and I think it's a reasonable starting point for negotiations... better than status quo (>30%) anyway.

  • Reply 20 of 36
    Quote:

    Originally Posted by Tallest Skil View Post

     

     

    I’d’ve said ‘Apple Turnover’. It’s at least marginally sexual.

     

    Or maybe ‘pie’ is and I’m missing something.

     

    Q is just J (jony), Moneypenny is Moneybenjamin (since Apple’s filthy, stinking rich)…




    Pie with whipped cream, maybe thats a bit too much info :)

Sign In or Register to comment.