Apple Preps Bond Sale for Stock Buyback Initiative

stockbuybackAhead of last week's earnings release, Apple announced that it would more than double its capital return program from $45 billion to $100 billion, with a 15 percent increase in dividend payments and a massive stock buyback initiative.

To facilitate the expanded capital return program, which will amount to a share repurchase of $60 billion, Apple must take on debt, a process that the company initiated today. According to Reuters, Apple has begun investor calls, led by both Deutsche Bank and Goldman Sachs, and it has filed the necessary SEC paperwork for a debt offering.

The only major tech company without a penny of debt on its books, Apple stunned the markets last week by announcing it could sell debt for the first time to help fund a $100 billion capital return program for shareholders.

Any bond offer from the makers of the iconic iPhone and iPad would be highly sought after by investors, and it is believed the company could raise funds at a cheaper rate than even Triple A rated Microsoft.

Apple has a long history with both Deutsche Bank and Goldman Sachs. According to Bloomberg, the former advised Apple on its takeover of Next Computer, while the latter has been advising Apple on a cash plan. It is unknown if one of the two banks will lead the upcoming bond offering.

Though Apple has a cash pile that exceeds $145 billion, only a portion of that is available in the United States, leaving the company unable to fully fund its stock buyback. Borrowing money will allow Apple to avoid the taxes that it would incur moving money from overseas.

Popular Stories

iphone 17 models

No iPhone 18 Launch This Year, Reports Suggest

Thursday January 1, 2026 8:43 am PST by
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle. Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
duolingo ad live activity

Duolingo Used iPhone's Dynamic Island to Display Ads, Violating Apple Design Guidelines

Friday January 2, 2026 1:36 pm PST by
Language learning app Duolingo has apparently been using the iPhone's Live Activity feature to display ads on the Lock Screen and the Dynamic Island, which violates Apple's design guidelines. According to multiple reports on Reddit, the Duolingo app has been displaying an ad for a "Super offer," which is Duolingo's paid subscription option. Apple's guidelines for Live Activity state that...
Low Cost A18 Pro MacBook Feature Pink

Apple's 2026 Low-Cost A18 Pro MacBook: What We Know So Far

Friday January 2, 2026 4:33 pm PST by
Apple is planning to release a low-cost MacBook in 2026, which will apparently compete with more affordable Chromebooks and Windows PCs. Apple's most affordable Mac right now is the $999 MacBook Air, and the upcoming low-cost MacBook is expected to be cheaper. Here's what we know about the low-cost MacBook so far. Size Rumors suggest the low-cost MacBook will have a display that's around 13 ...
govee floor lamp

CES 2026: Govee Announces New Matter-Connected Ceiling and Floor Lights

Sunday January 4, 2026 5:00 am PST by
Govee today introduced three new HomeKit-compatible lighting products, including the Govee Floor Lamp 3, the Govee Ceiling Light Ultra, and the Govee Sky Ceiling Light. The Govee Floor Lamp 3 is the successor to the Floor Lamp 2, and it offers Matter integration with the option to connect to HomeKit. The Floor Lamp 3 offers an upgraded LuminBlend+ lighting system that can reproduce 281...
Belkin 25W Battery magnetic

CES 2026: Belkin Announces Magnetic Ring Power Bank, Modular Dock, and More

Sunday January 4, 2026 3:02 pm PST by
Belkin today announced a range of new charging and connectivity accessories at CES 2026, expanding its portfolio of products aimed at Apple device users. UltraCharge Pro Power Bank 10K with Magnetic Ring The lineup includes new Qi2 and Qi2.2 wireless chargers, magnetic power banks, a high-capacity laptop battery, and USB-C productivity accessories, with an emphasis on higher charging...
airpods pro 3 glitter

AirPods New Year's Deals Include Up to $99 Off AirPods Max, AirPods Pro 3, and AirPods 4

Sunday January 4, 2026 8:04 am PST by
Now that the calendar has flipped over into January, steep discounts on popular Apple products have become more rare after the holidays. However, if you didn't get a new pair of AirPods recently and are looking for a model on sale, Amazon does have a few solid second-best prices this week. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
Low Cost MacBook Feature A18 Pro

Low-Price 12.9-Inch MacBook With A18 Pro Chip Reportedly Launching Early This Year

Friday January 2, 2026 9:08 am PST by
Apple plans to introduce a 12.9-inch MacBook in spring 2026, according to TrendForce. In a press release this week, the Taiwanese research firm said this MacBook will be aimed at the entry-level to mid-range market, with "competitive pricing." TrendForce did not share any further details about this MacBook, but the information that it shared lines up with several rumors about a more...
Clicks Communicator Feature

'Clicks Communicator' Unveiled — Will You Carry This With Your iPhone?

Friday January 2, 2026 6:35 am PST by
The company behind the BlackBerry-like Clicks Keyboard accessory for the iPhone today unveiled a new Android 16 smartphone called the Clicks Communicator. The purpose-built device is designed to be used as a second phone alongside your iPhone, with the intended focus being communication over content consumption. It runs a custom Android launcher that offers a curated selection of messaging...

Top Rated Comments

jdechko Avatar
166 months ago
Sorry, but the amount of stupidity here is baffling.

1) Smart people borrow money all the time when it suits them financially Borrowing money at 2% and holding investments at 3% is better than cashing in bonds at 3% and having no debt (or borrowing at 2% and having to pay 15% in taxes). Peter Oppenheimer, CFO > Internet Armchair Accountants on MR

2) Apple is buying back stock slowly. They can't afford to completely go private, but you can bet that's where they are headed. As long as they are a public company, they are still dependent on some outside entity (stockholders). And given the current state of affairs, a bank loan is much less volatile than Apple's share price.

3) Tim Cook is the business genius to Steve's marketing/product genius. Tim Cook is the reason why Apple has $145bn in the bank. Cook is the reason why the Steve could announce the iPad at $499 instead of $999. Cook definitely isn't a product guy, no doubt. But he is a master at operations. (This is the reason why Steve Jobs recommended Cook as his successor).

Firing Tim Cook would be a huge disaster for Apple (see #3). It's what a vocal minority of the stockholders are calling for (see #2), which is why it won't happen.
Score: 6 Votes (Like | Disagree)
50548 Avatar
166 months ago
As an Apple shareholder, I am intrigued and I'm not completely convinced by this.

The moment you start taking on debt is the moment you lose your independence.

What makes this move even more moronic is the basic fact that Apple, of all companies, is the ONLY one with zero debt and zero need to borrow money.

Of course, the usual "investors" looking for a cheap buck will praise this move as the main enabler of fat dividends and artificially-higher stock prices.

Remember when SJ used to tell us how Apple had no debts whatsoever? Where is he when we need him?

Tim Cook = Michael Spindler Redux.
Score: 6 Votes (Like | Disagree)
Chupa Chupa Avatar
166 months ago
As an Apple shareholder, I am intrigued and I'm not completely convinced by this.
Convinced of what? The buyback or the borrowing to pay for it?

At any rate this is a tip of the hat to mutual, hedge, and pension fund managers who want to see some $ if they are to keep positions in AAPL.
Score: 6 Votes (Like | Disagree)
camnchar Avatar
166 months ago
Apple should just create an overseas bank and loan the money to itself.
Score: 4 Votes (Like | Disagree)
oneMadRssn Avatar
166 months ago
"..more than double its capital return program from $55 billion to $100 billion.."

Hmmm..?

haha. Math fail.
Score: 4 Votes (Like | Disagree)
SmoMo Avatar
166 months ago
"..more than double its capital return program from $55 billion to $100 billion.."

Hmmm..?
Score: 4 Votes (Like | Disagree)