Apple to Fund Stock Buybacks and Dividends Through Another $5B Bond Sale - MacRumors
Skip to Content

Apple to Fund Stock Buybacks and Dividends Through Another $5B Bond Sale

by

Apple BondsAs Apple prepares to launch a new line of iPhones next week, the company is selling another round of bonds to further fund share buybacks and dividends, reports Bloomberg. Apple plans to offer $5 billion of debt in four parts to raise cash for its current capital return program.

The iPhone maker is offering $5 billion of debt in four parts, after dropping a two-year floating rate component, according to a person with knowledge of the matter. The longest portion of the sale, a 30-year security, may yield 1.1 percentage points above Treasuries, down from initial talk of around 1.25 percentage points, said the person, who asked not to be identified because the deal is private.

In August, Apple CFO Luca Maestri said Apple had completed $222.9 billion of its $300 billion capital return program, which is set to last through 2019. That figure includes $158.5 billion in share repurchases.

At the beginning of July Apple held over $261.5 billion in cash and marketable securities, but approximately 94 percent of that money is held overseas. It would cost Apple upwards of 35 percent in taxes to repatriate its overseas cash, so Apple uses debt markets to raise money more cheaply.

Apple's upcoming bond sale follows $7 billion in debt raised in a six-part bond sale in May of 2017.

Tag: Bonds

Top Rated Comments

jimthing Avatar
113 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
That may be a short term issue for a growing company during Jobs' period. But established ones holding large capital reserves don't have this issue, as clearly borrowing is cheaper than the tax bill.

It'd be silly to bring money into the US and pay 35%+ on it, when you can lend at a fraction of that rate.
Score: 7 Votes (Like | Disagree)
john123 Avatar
113 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
The criticisms of debt financing in the literature don't really apply in this case. That's why net debt, which takes into account cash and cash equivalents, is a better measure.
Score: 3 Votes (Like | Disagree)
luvbug Avatar
113 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
Score: 3 Votes (Like | Disagree)
RogerWilco Avatar
113 months ago
Nothing says Sillycon Valley ethos like a debt-funded share repurchase plan. Modern, sanitary, and totally bereft of any benefit to the mass of humanity living outside the bubble.
Score: 2 Votes (Like | Disagree)

Popular Stories

MacBook Pro Low Angle Wide Lens

Apple to Launch 'MacBook Ultra' With These Six New Features

Friday April 24, 2026 10:32 am PDT by
While the 14-inch and 16-inch MacBook Pro were just updated with M5 Pro and M5 Max chips last month, bigger changes are reportedly around the corner. According to Bloomberg's Mark Gurman, the higher-end MacBook Pro models will be receiving a major redesign by early 2027, and he said that Apple might use "MacBook Ultra" branding for them. If so, the MacBook Ultra would likely be a...
Dynamic Island iPhone 18 Pro Feature

This Is What the iPhone 18 Pro Looks Like

Saturday April 25, 2026 10:00 am PDT by
A recent leak provides our best look yet at the design of Apple's upcoming iPhone 18 Pro and iPhone 18 Pro Max models. Leaker Sonny Dickson recently shared images of the first iPhone 18 Pro, iPhone 18 Pro Max, and foldable iPhone dummy models. The images largely conform with rumors about the designs of the three devices and provide the first real visual confirmation of how they will look. ...
app store monthly sub commitment

Apple Introduces App Store Monthly Subscriptions With 12-Month Commitment

Monday April 27, 2026 12:52 pm PDT by
Apple today announced the launch of a new subscription option for App Store developers: monthly subscriptions with a 12-month commitment. The new option allows developers to offer subscribers discounted pricing typically associated with an annual subscription but paid on a monthly basis to keep payments more affordable. This new payment option allows you to offer subscribers more affordable...