Apple's latest bond sale more modest than earlier offerings, hits $7 billion

Posted:
in AAPL Investors
Following the initial notification of a new bond sale on Thursday, Apple has launched the offering and raised $7 billion in a six-part sale with due dates ranging to 2027.




Both Thursday's and Friday's filings indicate that the due dates will be spread over six periods with two floating rate notes due in 2020 and 2022, and four fixed rate due in 2020, 2022, 2024, and 2027. The amounts per offering are $500 million, $750 million, two worth $1 billion each, $1.75 billion, and $2 billion, respectively.

Joint managers continue to be Goldman Sachs & Co, J.P. Morgan, and Wells Fargo Securities. Amounts will be clarified in future updates to the document. Apple uses the sales to support further share buyback programs, and dividend offerings.

AppleInsider was the first to note the redacted offering on Thursday in a prospectus filed pursuant to federal regulations before the details were finalized.

During Apple's quarterly financial disclosures on Tuesday, Apple simultaneously announced plans to extend its capital return program by $50 billion and for another full year. Given the expansion, the stock buybacks should reach the $300 billion mark by March 2019.

The expansion noted a raised ceiling on stock buybacks, pushed from $175 billion in Q2 2016 to $210 billion for the current quarter. Quarterly dividends were increased to 10.5 percent, and a payout of $0.63 per share will be delivered on May 18 to people owning shares by the end of the trading day on May 15.

Comments

  • Reply 1 of 8

    (Not really related to the article, but oh well)

    Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days?  I find it very surprising that this happened this week, but I'm certainly glad it did.  Usually the investor herd builds on negative momentum for at least a few weeks.

  • Reply 2 of 8
    carnegiecarnegie Posts: 401member

    (Not really related to the article, but oh well)

    Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days?  I find it very surprising that this happened this week, but I'm certainly glad it did.  Usually the investor herd builds on negative momentum for at least a few weeks.

    I can't remember what's happened in after-earnings after-hours trading for each quarter. Some of that stuff blends together in my memory after so many quarters and reports and such.

    But I can say that there have been times when the after-hours trading price dropped quite a bit right after earnings and then rebounded a lot shortly thereafter or the next day. When Apple's earnings are released I'm usually watching the after-hours trading pretty closely to see if there's (what I consider to be) a quick opportunity based on an initial (wrong in my assessment) reaction. After-hours trading can be volatile. And there have been times when the first move in the trading price has been contrary to what I'd have expected and when that move was dramatically reversed later in after-hours trading or the next day.
  • Reply 3 of 8
    SpamSandwichSpamSandwich Posts: 29,909member

    (Not really related to the article, but oh well)

    Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days?  I find it very surprising that this happened this week, but I'm certainly glad it did.  Usually the investor herd builds on negative momentum for at least a few weeks.

    The jobs report came in with very strong numbers, which is positive news for Trump. Look at Tesla stock today, in addition to AAPL. Both just had big jumps.
    edited May 2017 patchythepirate
  • Reply 4 of 8
    ddawson100ddawson100 Posts: 446member
    Apple's bond holdings are just astronomical. They keep innovating in surprising ways.



    https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds

    The jobs report came in with very strong numbers, which is positive news for Trump.
    Trump on the jobs numbers: "They may have been phony in the past, but it's very real now."

    Edit: add picture back. Link to imgur didn't seem to work.
    edited May 2017 randominternetperson
  • Reply 5 of 8
    SpamSandwichSpamSandwich Posts: 29,909member
    Apple's bond holdings are just astronomical. They keep innovating in surprising ways.



    https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds

    The jobs report came in with very strong numbers, which is positive news for Trump.
    Trump on the jobs numbers: "They may have been phony in the past, but it's very real now."
    Well, previous unemployed numbers left off many people who were thrown into the category of "long-term unemployed" or permanently unemployed. I do not know if that practice has changed.
  • Reply 6 of 8
    carnegiecarnegie Posts: 401member
    Apple's bond holdings are just astronomical. They keep innovating in surprising ways.



    https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds

    The jobs report came in with very strong numbers, which is positive news for Trump.
    Trump on the jobs numbers: "They may have been phony in the past, but it's very real now."
    Well, previous unemployed numbers left off many people who were thrown into the category of "long-term unemployed" or permanently unemployed. I do not know if that practice has changed.
    People who didn't work during the reference week, who want work and are currently available for work, but who hadn't actively looked for work at any point during the previous 4 weeks, are not counted as unemployed. That's what I think you're referring to. That is pretty much how it's always worked and remains the case today. There have been some tweaks to how some things have been counted over the years, but not any time recent. Also, those people that I described are counted for some of the unemployment (and underemployment) measures that the BLS reports, just not for the headline unemployment rate that many people pay attention to.

    There was a time a few years ago when not counting such people (which, again, is how it had long been done) lowered the reported (headline) unemployment rate some - 1%-ish. But that effect has mostly unwound now and the number of people that fit into that category is basically at historically normal levels. And, btw, it doesn't take much to be considered to have actively looked for work within the 4 weeks prior to the reference week. Calling a friend and asking if they know of any work that's available would qualify.

    EDIT: To be clear, when I say that not counting such people lowered the headline rate some, I mean that it lowered the headline rate more than is normal. There are always some number of people that fit into the category that I described. During the 90s and much of the 00s the number was in the ballpark of 1-1/2 million, though it of course fluctuated. In the wake of the recession the number increased in the ballpark of 1 million. So the effect was to make the headline unemployment rate look a little better than reality as those people weren't - as they had never been - counted as unemployed. That effect has mostly unwound at this point because the number of those people has returned to a more normal level. 
    edited May 2017 ddawson100
  • Reply 7 of 8
    davidwdavidw Posts: 937member

    (Not really related to the article, but oh well)

    Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days?  I find it very surprising that this happened this week, but I'm certainly glad it did.  Usually the investor herd builds on negative momentum for at least a few weeks.

    You have to remember that after hours trading is magnified because so little shares are traded. After hours numbers can be more easily manipulated with just a hundred thousand shares trading. I usually count on AAPL trading up or down by 50% of AAPL  movement in after hours trading after earnings, the next day. If AAPL is down by 2% after hours, then AAPL will end up being only down by 1.0% at the end of trading the next day. If AAPL is up 3% then AAPL is only up 1.5% the next day. Besides the bubble burst in 2000, I can only remember Apple really blowing out or really missing earnings only a handful of times and after hours numbers carried over to the end of next day. 

    Apple earnings is almost a non event for AAPL because Apple is so conservative with their predictions. And traders know this. Thus when Apple have a very good quarter, it usually  don't move the stock much because Apple conservative numbers are built into the analyst whisper numbers. And Apple very rarely miss earnings by much on their own conservative numbers. The only quarter where AAPL might move a lot and stay that way is their 1st quarter report, their holiday numbers. Any surprise there might cause a big movement in AAPL, up or down.  

    Right now, AAPL share price is mainly due to the expected new release of iPhone 8. Any bad news there, announced by Apple, would cause more of a drop than the slightly missed in earnings. Plus the miss was due to lower iPhone sales. Which is to be expected, as many are waiting for iPhone 8, later this year.  Not only that, Apple increased their dividend and investors might be trying to take advantage of that now by buying on any dip in AAPL, rather than later and maybe missing out a higher percent dividend payout per share, if AAPL were to recover before ex-dividend.   
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