Apple-BondsApple has filed a preliminary prospectus supplement with the U.S. Securities and Exchange Commission as it prepares to issue a $10-$12 billion bond sale, reports CNBC. The debt raised will fund Apple's capital return program, including continued stock buybacks and dividend payments to shareholders, and general corporate purposes such as the repayment of debt and acquisitions.

Apple will be offering floating rates that mature in 2018 and 2019, in addition to fixed rates that mature between 2018 and 2046. Apple's proposed 30-year bond due in 2046 may yield 2.15 percentage points more than similar-maturity Treasuries, according to Bloomberg. Apple is also planning to issue seven-year green bonds, typically used for clean energy and other sustainable initiatives, the report claims.

Apple's capital return program currently runs through March 2017, as announced last year. The company has returned $153 billion in capital to investors of its $200 billion currently authorized, so the iPhone maker will almost certainly need to raise debt through this bond sale in order to continue stock buybacks and dividend payments before setting a new authorized amount as soon as April.

Apple held $215.7 billion in cash and marketable securities, partially offset by $53.2 billion in long-term debt, as of the first fiscal quarter of 2016, but a significant portion of that money is held overseas and would be subject to high U.S. taxes upon repatriation. By raising debt through bonds, Apple can pay for its U.S. operations at a much lower rate, especially given its Aa1/AA+ bond credit rating.

Update: Apple has filed a final pricing term sheet with the U.S. SEC confirming its nine-part $12 billion bond sale.

Tags: Bonds, SEC

Top Rated Comments

dBeats Avatar
91 months ago
a desperate try to stabilize the shares in a rather money-burning action…. instead of caring about customers needs… or care about the horrible working conditions in China...
Apple is at the top of the list of the most active companies assuring worker conditions and rights. Most companies who do work in China are low profile enough that they don't even need to make a report. Why single out Apple? What about any other electronics manufacturer, consumer electronics, home appliance, clothing, children's toys, steel manufacturing, etc. The problem isn't Apple, it's China. China's elite would rather pump their egos up on the death of their own people's children then ever consider real laws and guidelines for worker safety. So seriously stop the BS. Apple is literally doing everything it can, which can not be said for some others whose products you are probably wearing or looking at or touching at this very moment.
Score: 10 Votes (Like | Disagree)
joueboy Avatar
91 months ago
I thought to payoff Kanye's debt. ROFL!
Score: 7 Votes (Like | Disagree)
tomnavratil Avatar
91 months ago
That's a good move by Apple considering its position especially with that credit rating and (hopefully) more innovation boost. Much better than bringing money back to the US with that sort of taxation.
Score: 6 Votes (Like | Disagree)
ghost187 Avatar
91 months ago
What a dumb way to spend that money. If Cook is so worried about the share prices, he can hire more people to fix software bugs, put more GBs of storage and ram in all of its hardware, add a couple millimeters to substantially increase battery life of all of its hardware, and I'm sure more people will buy Apple goods and share prices will naturally increase as well. They can buy companies like Adobe and Nintendo for what they spend on buybacks yearly. I buy Apple products, but I know they are far from perfect and Android and Windows just plain suck, so I don't have much of a choice. Watching where the profits go is a bit disturbing to be honest.
Score: 5 Votes (Like | Disagree)
Bubba Satori Avatar
91 months ago
They bought shares at $140.
They bought shares at $110.
They bought shares at $95

Four observations.
1. Great example of dollar cost averaging. If the stock goes up to $200 they're geniuses.
2. Think of all the hardware and software they could have upgraded and/or fixed with all that money.
3. Never try to catch a falling knife. It looks like they're failing terribly at propping the stock price up.
4. Tim, Eddy and Jony need to be sacked.
Score: 3 Votes (Like | Disagree)
ghost187 Avatar
91 months ago
Not really. If you look into why, ultimately, that stocks have value, it's because eventually it is expected that they will pay dividends or will be repurchased by the company. This is the underpinning that makes stocks something more than just the Greater Fool Theory.
Honestly, I'd be very happy if Apple went private like Dell did recently, but I somehow doubt it can happen with a company of Apple's size.

Why do I care? Because most of the problems people complain about are caused by Tim Cook being a miser, and he does it to please Wall Street.
Score: 2 Votes (Like | Disagree)

Popular Stories

iOS 16

iOS 16.3 Now Available for Your iPhone With These 4 New Features

Friday February 3, 2023 1:13 pm PST by
Apple released iOS 16.3 in late January following nearly six weeks of beta testing. The software update is available for the iPhone 8 and newer, and while it is a relatively minor update, it still includes a handful of new features, changes, and bug fixes. Below, we've recapped new features in iOS 16.3, including support for physical security keys as a two-factor authentication option for...
iPhone 14 Pro Purple Side Perspective Feature Purple

Gurman: Apple Considering New High-End iPhone Alongside Pro and Pro Max

Sunday February 5, 2023 6:07 am PST by
Apple has discussed selling a new top-of-the-line iPhone alongside the Pro and Pro Max models in 2024 at the earliest, according to Bloomberg's Mark Gurman. Based on this timeframe, the device would be part of the iPhone 16 lineup or later. In a September 2022 edition of his weekly "Power On" newsletter, Gurman said there was "potential" for an iPhone 15 Ultra to replace the iPhone 15 Pro...
ipad air purple

Deals: M1 iPad Air Hits Record-Low Prices at TigerDirect, Starting at $313.99 (48% Off) [Updated]

Saturday February 4, 2023 10:05 am PST by
Online retailer TigerDirect has slashed pricing on the M1 iPad Air in several colors, offering the base 64GB configuration for just $313.99 in Purple and Pink. Note: MacRumors is an affiliate partner with TigerDirect. When you click a link and make a purchase, we may receive a small payment, which helps us keep the site running. That's a savings of 48% compared to Apple's normal $599.00...
mac studio pink

Apple May Not Launch Updated Mac Studio With M2 Ultra Chip Due to Similarity With Upcoming Mac Pro

Sunday February 5, 2023 6:06 am PST by
A new version of the Mac Studio with the "M2 Ultra" chip is unlikely to arrive in the near future, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that since the upcoming Apple silicon Mac Pro is "very similar in functionality to the Mac Studio," Apple may wait until the release of M3- or M4-series chips to update the machine, or...
webkit vs chromium feature

Google Working on Browser for iOS That Would Break Apple's App Store Rules

Saturday February 4, 2023 1:30 am PST by
Google's Chromium developers are working on an experimental web browser for iOS that would break Apple's browser engine restrictions, The Register reports. The experimental browser, which is being actively pursued by developers, uses Google's Blink engine. Yet if Google attempted to release it on the App Store, it would not pass Apple's App Review process. Apple's App Store rules dictate...
Apple Silicon Teal Feature

The Next Big Apple Silicon Device May Not Be a Mac or iPad

Wednesday February 1, 2023 3:57 am PST by
Apple's next device with an Apple silicon chip may not be a Mac or an iPad, but rather an advanced external display, according to recent reports. The display, which is rumored to arrive this year, is expected to sit somewhere between the $1,599 Studio Display and the $4,999 Pro Display XDR – but more exact information about the device's positioning and price point is as yet unknown. While ...
top stories 4feb2023

Top Stories: New HomePod Launches, iOS 16.3.1 Coming Soon, and More

Saturday February 4, 2023 6:00 am PST by
This week saw the launch of the final product from Apple's January hardware announcements, with the second-generation HomePod making its way into customers' hands. Other news and rumors this week included signs of an interim iOS 16.3.1 bug fix update in the works as we await a fresh round of beta testing for a more significant iOS 16.4 update, a report on the potential dangers of using...
maxresdefault

Hands-On With Apple's Second-Generation HomePod

Friday February 3, 2023 1:28 pm PST by
Today is the official launch day for the second-generation HomePod that was introduced in January, and we picked one up to compare it to the original HomePod that Apple discontinued in 2021. Subscribe to the MacRumors YouTube channel for more videos. Design wise, the second-generation HomePod looks a lot like the first-generation model, featuring the same rounded design and acoustic mesh...