Report: Apple Selling Record Amount in Bonds

NEW YORK (AP) -- Apple (NASDAQ: AAPL  ) is selling $17 billion in bonds on Tuesday, according to a published report. That would make it the largest corporate bond issue ever.

Apple is selling the bonds in its first debt issue since the 1990s. The company is raising the money to give to shareholders through dividend payments and stock buybacks.

The company has $145 billion in cash, more than enough for the $100 billion cash return program it announced last week. However, most of its money sits in overseas accounts, and the company doesn't plan to bring it to the U.S. until the federal corporate tax rate is lowered.

The Wall Street Journal has reported the total value of the issue, citing unnamed bond-market participants. The paper said the yields were coming in lower than expected, and lower than Apple's credit rating would suggest. The bonds come in three- to thirty-year maturities, according to a preliminary prospectus filed by the company.

Ratings agencies Standard & Poor's and Moody's (NYSE: MCO  ) last week rated Apple at one rung below their highest rating for issuers. Moody's said only four non-financial companies have the highest rating, and Apple doesn't deserve it because it could adopt an even more shareholder-friendly policy, and its policy of not repatriating cash could force it to borrow more.

Research firm Dealogic said the largest previous corporate bond deal was a $16.5 billion issue by Swiss drug company Roche Holdings in 2009.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2398027, ~/Articles/ArticleHandler.aspx, 10/1/2014 4:47:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement