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
66 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
66 months ago
I thought to payoff Kanye's debt. ROFL!
Score: 7 Votes (Like | Disagree)
tomnavratil Avatar
66 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
66 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
66 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
66 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)

Top Stories

imac pro featured black

Apple Confirms iMac Pro Will Be Discontinued When Supplies Run Out, Recommends 27-Inch iMac

Saturday March 6, 2021 7:33 am PST by
Apple on late Friday evening added a "while supplies last" notice to its iMac Pro product page worldwide, and removed all upgrade options for the computer, leaving only the standard configuration available to order for now. We've since confirmed with Apple that when supplies run out, the iMac Pro will no longer be available whatsoever. Apple says the latest 27-inch iMac introduced in August...
bloodoxygenapplewatch

Apple Watch Series 7 to Gain Breakthrough New Health Feature

Friday March 5, 2021 5:34 am PST by
Apple is reportedly planning to bring a new, first-of-its-kind health technology to the Apple Watch Series 7, in what could be a breakthrough for managing conditions such as diabetes more easily. According to a recent report from ETNews, the Apple Watch Series 7 will feature blood glucose monitoring via a non-invasive optical sensor. Measuring blood glucose levels, also known as blood...
Top Stories 48

Top Stories: iPhone 13 Leaks, OLED iPads and Macs, New AirTags Evidence

Saturday March 6, 2021 6:00 am PST by
iPhone rumors are heating up, with noted analyst Ming-Chi Kuo this week releasing a wide-ranging report outlining his expectations for the iPhone lineup over the next three years. This week also saw rumors about OLED displays potentially coming to iPad and Mac starting next year, increasing signs of AirTags functionality in iOS 14.5 betas, and more, so check out all of the details below! i...
apple products refurbished store banner

Class Action Lawsuit Over Apple Providing Refurbished Replacement Devices Proceeding to Trial in August

Friday March 5, 2021 9:53 am PST by
Initially filed in 2016, a class action lawsuit that accuses Apple of violating the Magnusson-Moss Warranty Act, Song-Beverly Consumer Warranty Act, and other U.S. laws by providing customers with refurbished replacement devices is set to proceed to trial August 16, according to a notice this week from law firm Hagens Berman Sobol Shapiro LLP. Apple's repair terms and conditions state that,...
Oled iPads and MackBook Pro

OLED 10.9-Inch iPad Rumored for Early 2022, 12.9-Inch iPad Pro and 16-Inch MacBook Pro Could Follow

Thursday March 4, 2021 8:37 pm PST by
Earlier today, DigiTimes shared a preview of an upcoming report claiming that Apple is working on both iPad and Mac notebook models with OLED displays that could launch starting in 2022. The full report from DigiTimes is now available, and it includes several new alleged details about Apple's plans. According to the report, the first of these devices to adopt an OLED display is likely to be...
iPhone 13 Notch Feature2

iPhone 13 Rumor Recap: Smaller Notch, Larger Batteries, 120Hz for Pro Models, Improved 5G, Wi-Fi 6E, and More

Friday March 5, 2021 8:20 am PST by
While we are likely at least six months away from Apple unveiling the so-called iPhone 13 lineup, rumors about the devices are starting to accumulate, so we've put together this recap of everything that is expected so far. The upcoming iPhone 13 lineup will consist of the same four models and the same screen sizes as the iPhone 12 lineup, according to reputable analyst Ming-Chi Kuo,...
imac pro while supplies last

iMac Pro No Longer Custom Configurable, Available 'While Supplies Last'

Friday March 5, 2021 10:14 pm PST by
Apple appears to be on the verge of discontinuing the iMac Pro, with the store page for the high-end all-in-one Mac including a "While supplies last" tagline and only the base model with no custom configurations available for purchase. The iMac Pro launched in December 2017, and while there have been a few tweaks to the available configurations over the years, it has received no substantial...
hlh030121feafutureoffitness012 1614286673

A Look Inside Apple's 23,000 Square-Foot Fitness+ Studio

Friday March 5, 2021 10:59 am PST by
Apple Fitness+, the latest service to join the Apple family, integrates tightly with the Apple Watch to offer a comprehensive and growing selection of workout and exercise videos made by a team of professional trainers. Apple Fitness+ Studio (via Men's Health) Apple curates and records all of the videos at a location in Santa Monica, California, and each video features a similar background...
maxresdefault

What's on Your iPhone Home Screen?

Thursday March 4, 2021 10:31 am PST by
Over on our YouTube channel, MacRumors videographer Dan has a new video up where he shares his Home Screen, wallpaper, and all of his current favorite widgets. Subscribe to the MacRumors YouTube channel for more videos. Check out Dan's video to see his setup, and then comment below and show us your own Home Screens. It's always fun to see other peoples' Home Screens, and with widgets and...
microsoft edge vertical tabs

Microsoft Edge 89 Brings Vertical Tabs and New History View

Friday March 5, 2021 4:06 am PST by
Microsoft has officially released version 89 of its popular Chromium-based Edge browser, bringing its long-trialed vertical tabs feature to Mac for the first time. Vertical tabs are intended to make more efficient use of screen space, and should prove a welcome addition for users browsing on 16:9 ratio displays in particular. Users can click vertical tabs to switch between them and...