Apple Prices Bond Sale in Japan at ¥250 Billion

by

Apple Red LogoApple has set a principal amount of ¥250 billion ($2.01 billion) for its bond sale in Japan per a final pricing term sheet published by the U.S. Securities and Exchange Commission on Thursday. The yen-denominated bonds have an interest rate of 0.350% and are set to mature on June 10, 2020. Interest is to be paid semi-annually on June 10 and December 10, commencing December 10, 2015.

The global notes will be available for purchase by both domestic and foreign investors, with net proceeds to be used for general corporate purposes, including stock buybacks, dividend payments, funding for working capital, capital expenditures, acquisitions and debt repayment. The issue is being handled by Goldman Sachs International and Mitsubishi UFJ Securities International.

Tags: bonds, Japan, SEC

Top Rated Comments

(View all)
Avatar
71 months ago

If you know anything about corporate finance and taxation it makes perfect sense. Each time a news item is posted here about a foreign bond issue, a Swiss one, a German one, etc, similar uninformed folks post. I suggest going back and simply re-reading the posts explaining why it makes sense. It will be quite informative.

In short, the government sticks its nose so far up the Apple core, AAPL has to respond somehow in their own best interest, and the interest of shareholders, which is their primary remit.

Rocketman

Easy there cowboy.

In the system we've developed as a society - yes perfect sense.

That's why I said when you take a step back it's crazy. As Cuban Missiles said, we're talking abut a global company with $200b to its name. Yet it's selling bonds to raise funds.

So calm your boosters. There was nothing uninformed about my post.
Score: 6 Votes (Like | Disagree)
Avatar
70 months ago

They can do whatever they want with it.

They could repatriate it and pay taxes. But they have the means to raise funds in another, cheaper, way. So they chose to do that.

Apple pays me dividends. That's a very good use of their money.
Score: 2 Votes (Like | Disagree)
Avatar
71 months ago
The name's Bond; Apple Bond.
Score: 2 Votes (Like | Disagree)
Avatar
71 months ago
These corporate finance games are always interesting. Apple has almost 200 billion in the banks around the world, but still issues a bond. I am sure there is some tax advantage somewhere in this, but with so much in the bank, this seems more trouble than its worth (but, I am sure I have no idea).
Score: 1 Votes (Like | Disagree)
Avatar
71 months ago

I don't understand what anything you've just said means. :oops: Come to think of it, I don't really grasp what's actually going on about bonds and the like. Not to step in on a good Internet argument or anything, but would somebody be patient enough to explain this? Or even simplify to: is this good news or bad news? Who does it benefit? Is this a shrewd Apple move or ...?

Keeping it simple, it's a smart busines move.

Apple has a lot of cash. But a big chunk of it is overseas. It can't use that money without getting hit by U.S. taxes when they 'bring it home'.

Apple has done a few bond sales over the last few years. Mostly they have used the money to buyback some of their own shares (reducing the supply and therefore boosting the share price), paying dividends among other things.

It's a good time to do the bond sales as rates are very low and of course Apple has insurance (the huge cash pile) so investors are keen to purchase (not to mention the general good health of the company).

That leads to my "crazy" comment. This global company has all this money, but rather than bring it home in the normal manner it's better (cheaper) for it to rack up some debt (in the form of bonds). What a funny old world, eh?
Score: 1 Votes (Like | Disagree)
Avatar
71 months ago

Keeping it simple, it's a smart busines move.

Apple has a lot of cash. But a big chunk of it is overseas. It can't use that money without getting hit by U.S. taxes when they 'bring it home'.

Apple has done a few bond sales over the last few years. Mostly they have used the money to buyback some of their own shares (reducing the supply and therefore boosting the share price), paying dividends among other things.

It's a good time to do the bond sales as rates are very low and of course Apple has insurance (the huge cash pile) so investors are keen to purchase (not to mention the general good health of the company).

That leads to my "crazy" comment. This global company has all this money, but rather than bring it home in the normal manner it's better (cheaper) for it to rack up some debt (in the form of bonds). What a funny old world, eh?

Thank you for your courtesy Keane, I feel I understand this a lot better now.

Best wishes. :)
Score: 1 Votes (Like | Disagree)

Top Stories

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

iPhone 12 Pro Allows You to Measure Someone's Height Instantly Using LiDAR Scanner

Saturday October 24, 2020 11:12 am PDT by
iPhone 12 Pro models feature a new LiDAR Scanner for enhanced augmented reality experiences, but the sensor also enables another unique feature: the ability to measure a person's height instantly using the Measure app. You can even measure the seated height of a person in a chair, according to Apple. When the Measure app detects a person in the viewfinder, it automatically measures their...

Google Reportedly Pays Apple $8-12 Billion Per Year to be Default iOS Search Engine

Sunday October 25, 2020 2:59 pm PDT by
The United States Justice Department is targeting a lucrative deal between Apple and Google as part of one of the U.S. government's largest antitrust cases, reports The New York Times. On Tuesday, the Justice Department filed an antitrust lawsuit against Google, claiming the Mountain View-based company used anticompetitive and exclusionary practices in the search and advertising markets to ...

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

PSA: Non-iPhone 12 Models Charge Super Slowly With MagSafe Charger

Friday October 23, 2020 4:11 pm PDT by
Alongside the iPhone 12 models, Apple introduced a new $39 MagSafe Charger that's meant to work with the magnets in the iPhone 12 Pro models to charge them up at a maximum of 15W. The MagSafe Charger is technically able to be used with older iPhones, but it's not a good idea because the charging with non-iPhone 12 devices is so slow. We did two tests with the iPhone XS Max, draining the...

MagSafe Charger Teardown Reveals Simple Design With Magnets and Charging Coil Encircling a Small Circuit Board

Friday October 23, 2020 7:50 am PDT by
iFixit has today shared a teardown of Apple's new MagSafe charger for the iPhone 12 and iPhone 12 Pro. An X-ray of the MagSafe charger courtesy of Creative Electron reveals the internal charging coil surrounded by a circular arrangement of magnets within the puck. The only seam that iFixit was able to leverage to open the device was where the white rubber circle meets the metal rim,...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

iFixit Shares Full iPhone 12 and 12 Pro Teardown Revealing Interchangeable Displays and Batteries

Saturday October 24, 2020 1:48 pm PDT by
After live streaming a teardown of the iPhone 12 and iPhone 12 Pro earlier this week, iFixit today provided a more in-depth teardown that goes through all of the components in the new devices, revealing several similarities between the two. Early testing conducted by iFixit shows that the iPhone 12 and 12 Pro displays are interchangeable and can be swapped without issue, though the max...