apple_feb2015_bondsApple today filed a prospectus with the Securities and Exchange Commission, hoping to sell $5 billion worth of new debt according to reports.

Managed by Goldman Sachs and Deutsche Bank, the offer's monetary specifics haven't yet been revealed by Apple, but the company says the money will be used to cover "general corporate purposes, including repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt."

As Bloomberg's Lisa Abramowicz points out, much of the proceeds the company receives from the bond sale are undoubtedly going to buybacks and dividend payments.


This follows the company's previous bond sale last November, where Apple notably began issuing bonds in euros. That sale saw Apple looking to raise €2.8 billion ($3.5 billion) for the usual "general corporate purposes," again primarily share buybacks and dividend payments.

Today's prospectus comes on the heels of the company's record-breaking earnings for the first fiscal quarter of 2015, posting revenue of $74.6 billion in the quarter, and subsequently seeing a noticeable bump in shares of its stock when the market opened last Friday.

While the company holds roughly $178 billion in cash and marketable securities, much of that cash is held outside of the United States and would currently be subject to significant taxes if brought back to the U.S. to be used for stock buybacks and dividends. As a result, Apple has been pursuing bond sales at very favorable interest rates as a cheaper means of funding these initiatives, repaying the bonds from ongoing operations over time.

Update Feb 3 4:52 PT: The Wall Street Journal reports that Apple has increased the size of its bond deal to $6.5 billion.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tag: Bonds

Top Rated Comments

Shadow Runner Avatar
124 months ago
Apple is not being "greedy" (or any company) they are doing what they need to to stay competitive. The U.S. government needs to change to allow companies to bring money and business back into the country favorably. It's a global economy and the U.S. just needs to stay competitive.
Score: 18 Votes (Like | Disagree)
ArtOfWarfare Avatar
124 months ago
I can't wait until they start scrambling all of their cash to get it back home when the White House passes the Bill taxing at a 14% rate any money kept overseas.

You're very confused if you think the White House passes bills. Obama proposed a bill, but given neither house of Congress is held by Democrats, I doubt there will be any traction on it. It's nothing but rhetoric and politics from Obama.
Score: 10 Votes (Like | Disagree)
SoAnyway Avatar
124 months ago
Lowering taxes in order to "stay competitive" is nothing more than a race to the bottom.

Companies like Apple need to pay the country that they base themselves out of, use its resources, and proudly call home no matter if the money is made overseas. Not doing so only cheats the US tax payer on top of the subsidies the already enjoy.
Score: 8 Votes (Like | Disagree)
wolfaaron Avatar
124 months ago
I can't wait until they start scrambling all of their cash to get it back home when the White House passes the Bill taxing at a 14% rate any money kept overseas. These greedy companies love it when the tax payer bails them out or when they help them with their infrastructure. But when it's their turn to pay their taxes, theyre good at hiding it.
Score: 8 Votes (Like | Disagree)
IJ Reilly Avatar
124 months ago
Since when does the executive branch pass bills? My copy of the U.S. Constitution says Congress passes bills and the president can either sign or veto.

And the 14% isn't the final#. Even the WH said it's a "starting point" for negotiation w/ Congress. IF their is an agreement it's likely to be 10% or below. But there are many in Congress who want comprehensive corporate tax reform, not piecemeal and won't agree on any % unless it's part of a complete modernization effort.
Everybody in Washington says comprehensive tax reform is an urgent necessity, yet they have been saying this for years without doing anything.

----------

You're very confused if you think the White House passes bills. Obama proposed a bill, but given neither house of Congress is held by Democrats, I doubt there will be any traction on it. It's nothing but rhetoric and politics from Obama.
It's all rhetoric and politics from everybody, period, full stop.
Score: 5 Votes (Like | Disagree)
giantfan1224 Avatar
124 months ago
Lowering taxes in order to "stay competitive" is nothing more than a race to the bottom.

Companies like Apple need to pay the country that they base themselves out of, use its resources, and proudly call home no matter if the money is made overseas. Not doing so only cheats the US tax payer on top of the subsidies the already enjoy.

Apple pays all applicable taxes with their associated U.S. operations, including employment, local and other taxes.
Score: 4 Votes (Like | Disagree)

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...