Last week Apple issued a US dollar bond of $3.5 billion to fund its capital return program, outstanding debit, acquisitions and other operating expenses, according to a filing with the Securities and Exchange Commission.
The issuance is an add on to the $12 billion bond sold in February, comprising three offerings maturing in 2021, 2016 and 2046.
The iPhone maker issues $750 million of its 2.25 percent notes maturing in 2021, $1.25 billion in 3.25 percent notes that are due in 2026, and $1.5 billion of its 4.65 percent notes due in 2046.
The Cupertino company is earmarking proceeds for common stock buybacks and dividend payouts, funding for capital, expenditures, acquisitions and repayment of debt. Apple estimates net proceeds of $3.64 billion after expenses.
The firms underwriting the bond are Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank Securities and J.P. Morgan. Co-managers are Barclays, Standard Chartered Bank, Wells Fargo Securities, CastleOak Securities, L.P., Drexel Hamilton, Loop Capital Markets and Ramirez & Co., Inc.
Apple has leveraged debt markets rather than repatriating its huge cash hoard to finance its $200 billion capital return program, which stood at $153 billion paid by the end of the calendar year 2015. By December the firm’s subsidiaries abroad held more than $200 billion in cash, cash equivalents and marketable securities which would be subject to high taxes if brought back to the USA.
Prior to February’s bond, Apple also issued a Euro-based offering worth around $2.25 billion in September 2015. The company has also sold bonds in Japanese yen, Swiss francs, British pounds and Australian dollars.
SOURCE: Apple Insider.