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Apple Files Bond Prospectus, Names Goldman Lead Underwriter

Tyler Durden's picture




 

Who could have thought, one year ago, that we would one day see an AAPL bond prospectus for floating and fixed rate notes (due between 2016 and 2043). And yet here we are, as the preannounced AAPL bond prospectus goes live and proves what we said months ago: that some $100 billion of the company's offshore held cash is non-US recourse courtesy of repatriation taxes, forcing the company to raise even more cash to fund US-based capital decisions. Perhaps the most surprising (or least) thing is who the lead underwriter would be. No surprise anymore: Goldman Sachs.

Steve Jobs is spinning at a steady RPM in the afterlife as the "growth company" dream is now officially over.

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Tue, 04/30/2013 - 08:22 | 3513226 new game
new game's picture

low hanging fruit?

Tue, 04/30/2013 - 08:22 | 3513236 Alpo for Granny
Alpo for Granny's picture

When there is only sizzle and no steak, it is time to get into bed with the butcher.

Tue, 04/30/2013 - 08:24 | 3513244 Careless Whisper
Careless Whisper's picture

The Careless Whisper Morning Update & Threadjacking (Ahead Of Mister Drudge)

Sovereign Indian Tribes Tell Fed Reserve Unit To F$ck Off

http://www.latimes.com/business/la-fi-lazarus-20130430,0,2015313.column

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Report: iPhone To Change Operating System To Be Like Windows 8

http://www.sfgate.com/technology/businessinsider/article/Here-s-More-Evi...

NYC Mayor Bloomberg To Keep "Your" Kids In School Until 6 PM

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Globalist Sec Of State: Forget The Narco Thing, Let's Integrate US Economy With Mexico's

http://www.miamiherald.com/2013/04/29/3371680/mexico-ends-open-access-fo...

Tue, 04/30/2013 - 08:41 | 3513281 i-dog
i-dog's picture

 

"Subject Small Business To Massive Audits"

Molon labe, idiots! Not much to audit since the unfortunate fire....

Tue, 04/30/2013 - 09:17 | 3513392 smlbizman
smlbizman's picture

its just more desperation from this fucking incompetent thieves.....just one more reason to stay home and save your money, and system d....its raining today in maryland...good thing we have that rain tax...what a croc of shit....see for everybody else its to save the children...here our child is the bay....so everything is for the bay....and as a long time resident who has spent and still does,  time on the bay...it is horrible and completly unsafe....they have even started putting signs up around quiasi priv/public shore lines...in the smallest of fine print that basically says..the water is so bad dont get in it...of course this is directly across from a swim club were everything is good...get a copy of a fishing license brochure...it advises not eating any fish in approx. 95 % of the bay...or limit 1 fish per year....and on and on and on.....

Tue, 04/30/2013 - 13:06 | 3514479 knukles
knukles's picture

What a deal!

Borrow money to pay dividends.
Financial Engineering at its' Finest.

Did somebody say Goldman Sachs?

Tue, 04/30/2013 - 08:27 | 3513245 negative rates
negative rates's picture

What was with all the cash on the sidelines about then?

Tue, 04/30/2013 - 08:39 | 3513280 fonzannoon
fonzannoon's picture

These bonds will sell. I think that is where the housing 2.0 bubble is wrong above. If anyone cares to take this head on I'd be interested.

There is no housing bubble. That article states those homes are being bought with cash. Not leverage, no crazy loans. The banks are not lending (see all the ZH deposits over loans articles). No one is taking out crazy arm's that will explode later on. No one is tapping equity in their existing homes to buy more homes.

What is happening is the big money knows the game is over and the banking system is a time bomb. They want anything tangible. That is why the gold vaults are being emptied. That is why all these real estate deals are being done in cash. Even treasuries and bonds like this apple bond seem like a safer place to park money than a bank account.

The only question is, how much money can leave the banks to buy tangible assets before the fractional reserve system implodes?

Tue, 04/30/2013 - 08:50 | 3513302 i-dog
i-dog's picture

Ben is handing out $85 billion a month for bankstas to buy plantations, errrr, properties.

Monopoly is easy if you're the 'banker' with a laser printer!

Tue, 04/30/2013 - 09:02 | 3513331 Dr. Engali
Dr. Engali's picture

Okay Fonz you're confusing me. Yesterday you were talking about this dragging out forever as we drift slowly down to third world status, and now today you're talking about an imminent implosion. Understandably it feels like it can go either way, I'm just a little confused by your comments.

On your other point about the housing bubble I totally agree. Barring certain areas, I don't think there is a bubble either. The banks are still holding on to shitloads of inventory and, they are still dragging their feet on foreclosures.

Tue, 04/30/2013 - 09:17 | 3513371 fonzannoon
fonzannoon's picture

Fair enough doc. I am absolutely playing both sides and there is an excellent reason for it.

I have absolutely no idea which way this thing will go. I am totally lost.

One one hand I am glued to every JPM gold vault report and ekm's imminent order from the Pres causing PD's to drop from the skies. Throw in Cyprus and this amazing tsunami of high end cash real estate purchases etc. and it sems to indicate that someone somewhere knows something is coming.

On the other hand, DB yesterday successfully added 90 million shares and they are rallying. UBS earnings this morning were supposedly spectacular (I only scanned headline). That seems to indicate that this game has a long way to go.

I have one foot in the matrix and the other one at a jam packed cheesecake factory.

Doc, to confuse you even more... If things were to completely implode, and you were a big big money guy and I know you are :) would you rather have your money in the bank or in high end property? Sure the property would lose nominal value, but the chance of corzining is a bit less. So maybe it is both Maybe the real estate is not a bubble, maybe however it is a mad dash for physical before the implosion around the bend?

Tue, 04/30/2013 - 09:33 | 3513426 YHC-FTSE
YHC-FTSE's picture

That's as decent as an answer gets. Whether it drags on to deposit a couple of planet-fulls of debt to our great, great grand androids, or whether the whole financial system suddenly breaks are both fairly reasonable predictions.  I too am clueless about what comes next.

There are constants in this maelstrom of information.  Paper devaluation,  rising unemployment,  rising indexes (careful there), and a rising class of headless chickens trying to park cash into anything tangible. 

Edit: re appl. Yeah this sucker will sell. Never mind that the whole reason for issuing IOUs is the lack of funds to put to use, never mind that it's a tech dependent corp only as good as its last product in a declining life cycle...., never mind it's all crazy.  Just ask Reggie.

Tue, 04/30/2013 - 09:31 | 3513430 Dr. Engali
Dr. Engali's picture

I agree..I'm in the same boat. One week it feels like it's going to fall apart and the next week it feels like it's business as usual. I watch all major news drop off the radar and the markets rally, but I see the slow decline in the country everywhere I look. As for the banks, I've been pretty consistent with my message, I only keep as much money in the banks that I need to function. I maintain money for the market too, but only money that I'm comfortable w losing if the feds try to pull a Cyprus on us. Any proceeds that I make I pull out for precious , and semi-precious (lead)metals.  The money that I used to dollar cost average into the market now gets averaged into tangibles. I'm not a big property person, I recently paid off the mortgage and I have no interest in debt ever again. By the way I saw you and Kito talking about locations...Indian is a pretty cheap place to live and pretty friendly to gun owners.

Tue, 04/30/2013 - 09:33 | 3513440 fonzannoon
fonzannoon's picture

This has to be the worst time in history to be a fiduciary.

Tue, 04/30/2013 - 09:36 | 3513445 Dr. Engali
Dr. Engali's picture

Agreed, but you know what? I tell my clients to by some tangibles, but 1 out of 20 will listen. They don't want anything to do with gold or silver. Some of them have been with me for 20 years, but when it comes to precious metals they tune me out.

Tue, 04/30/2013 - 09:39 | 3513477 fonzannoon
fonzannoon's picture

Yeah I tell them the same. Almost in unison they agree that it is prudent. Almost in unison none of them actually do it.

Tue, 04/30/2013 - 09:46 | 3513498 Rubicon
Rubicon's picture

Who are your clients and why are they vehemently against PM? Whats the reason?

Tue, 04/30/2013 - 09:49 | 3513509 fonzannoon
fonzannoon's picture

I deal with retail. They are not vehemently against PM's. Say QE and they zone out. Say money printing and they shrug. Say debt deficits and they look past you at a bird sitting on a tree.

Tue, 04/30/2013 - 10:04 | 3513575 Dr. Engali
Dr. Engali's picture

My clients are much like Fonz's in his post. Add to his response the fact that they don't want to have it in their home, and they don't want the hastle of going to the local dealer. Most of them want their savings to provide an income, so that's what I do.

Tue, 04/30/2013 - 11:13 | 3513911 Silver Bully
Silver Bully's picture

'My clients are much like Fonz's in his post. Add to his response the fact that they don't want to have it in their home, and they don't want the hastle of going to the local dealer.'

DING. DING. +1000 DING.

I even have family who understand what I tell them, that gets the system is going down. My sister's first question about buying PM's, however, is: 'why would I want to store it at home?'

Followed by:

'Won't I risk getting it stolen?

'Isn't that what a safety deposit box is for?'

'I should also buy a GUN?! SEVERAL GUNS?!?!?! But that means I have to learn to fire it . . .'

 

Everyone wants to take the easy way out. No one wants to take personal responsibility for themselves or their finances.

The worst part: Do anything else, but don't ask them to think for themselves.

Tue, 04/30/2013 - 09:03 | 3513337 new game
new game's picture

apples for real estate

better yet an orchard of apple trees!

cash crop...

Tue, 04/30/2013 - 09:14 | 3513377 new game
new game's picture

good dr. whether it gets shity today or in the future, the plan is to be in a debt free resolute position.

best said;be in a position of law compliance to avoid attraction, but understanding laws are created for the benifit of an ongoing oligarch, facist ruling elite.

therefore, pick and choose the right path to your freedom (as you see it), and that is the challenge...

all else bullshit...

Tue, 04/30/2013 - 09:34 | 3513443 tip e. canoe
tip e. canoe's picture

better yet an orchard of apple, plum, pear, peach & nut trees.

with some hazelnut & berry bushes underneath.

cash crops without the expenses for insecticides...

Tue, 04/30/2013 - 13:10 | 3514488 knukles
knukles's picture

Well done, Fonzie
Tangibles.

Tue, 04/30/2013 - 08:34 | 3513261 Sudden Debt
Tue, 04/30/2013 - 08:54 | 3513309 slaughterer
slaughterer's picture

Cook = Squid Mole.

(Who woulda thought.)

Tue, 04/30/2013 - 08:24 | 3513233 I am a Man I am...
I am a Man I am Forty's picture

they're playing ball now, expect the stock to go up from here

Tue, 04/30/2013 - 08:59 | 3513324 resurger
resurger's picture

i think thier cashflow is getting impaired, when you have a gigantic balancesheet and shitty sales, its very difficult to "sustain" profitability. take a look around, if you want to buy a mobile or a tab you can have so many brands beside Apple,this smells fishy and it stinks. this could be the demise of the big giant. yeah keep buying AAPL

Tue, 04/30/2013 - 08:24 | 3513234 resurger
resurger's picture

omfg... facepalm

Tue, 04/30/2013 - 08:27 | 3513242 jeebus
jeebus's picture

heh.

I've been laughing at Apple all the way up and I'll be laughing even more on the way down.

Tue, 04/30/2013 - 11:27 | 3513988 edifice
edifice's picture

Should laugh at those who continue to buy their underpowered, overpriced products.

Apple is the next Sony.

Tue, 04/30/2013 - 08:27 | 3513243 firstdivision
firstdivision's picture

Goldman is going to stick it in AAPL's butt, then they will perform some necrophilia on Jobs

Tue, 04/30/2013 - 08:49 | 3513293 SpanishGoop
SpanishGoop's picture

No, they are just going to take a big bite out of that juicy aapl.

 

Tue, 04/30/2013 - 08:25 | 3513246 Dr. Engali
Dr. Engali's picture

Apple is Wallstreet's bitch now.

Tue, 04/30/2013 - 08:31 | 3513253 resurger
resurger's picture

another stealthy QE, can you know if bank of israel is buyin the 2043 paper at par with special 15% coupon + Libor, gotta keep em happy

Tue, 04/30/2013 - 08:33 | 3513267 Careless Whisper
Careless Whisper's picture

Goldy only managed to get the bonds an AA rating, that's screw job number one.

Tue, 04/30/2013 - 08:30 | 3513250 PontifexMaximus
PontifexMaximus's picture

ot. didn't we debate about douche bank or better, Deutsche Bank, about dilution due to secondary...stock up....8%. so. AAPL could offer neg rates til 2100, would be oversubscribed 10x. Uncel Sam is happy.

Tue, 04/30/2013 - 08:28 | 3513251 kahunabear
kahunabear's picture

Add share buy backs to the long list of scams.

Tue, 04/30/2013 - 08:34 | 3513270 SpanishGoop
SpanishGoop's picture

What ? Goldman lead undertaker ?

 

Tue, 04/30/2013 - 08:58 | 3513322 Wakanda
Wakanda's picture

iSachs

Tue, 04/30/2013 - 09:14 | 3513389 SpanishGoop
SpanishGoop's picture

iSachs to sell iBonds in iStores.

Confusing.

 

Tue, 04/30/2013 - 08:35 | 3513272 pods
pods's picture

You just can't make this shit up.

This is like winning the powerball and then going to the bank to get a car loan.  "And here is my 100 gabillion for collateral."

pods

Tue, 04/30/2013 - 08:54 | 3513314 LetThemEatRand
LetThemEatRand's picture

As a small business owner, I'd like to know how I can take most of my profit and offshore but then issue bonds so I have the same amount of operating capital as if I kept the cash at home.  Oh that's right, I can't.  Carry on oligarchy.

Tue, 04/30/2013 - 09:03 | 3513350 new game
new game's picture

buy gold and store it abroad-best bet. then when she comes tumbling down go to zee gold and live happily ever to forth...

Tue, 04/30/2013 - 09:16 | 3513395 Jim in MN
Jim in MN's picture

 

A fruit-eating vampire squid.  Huh.

 

Truly, we live in an Age of Wonders.

Tue, 04/30/2013 - 13:05 | 3514471 edifice
edifice's picture

Veganism is all the rage, now.  Haven't you heard?

Tue, 04/30/2013 - 09:18 | 3513405 kaa1016
kaa1016's picture

This is a great move. It's damn near free money so why the hell not take it. At some point, companies will wish they could borrow at today's rates (assuming we're not Japan). It's the corporate carry trade. Borrow low, invest high.

Tue, 04/30/2013 - 09:45 | 3513488 Bastiat
Bastiat's picture

It's floating rate;  floating rate deals have all kinds of hidden event risk, hidden triggers and big bank counter-party risk,  beyond the obvious market risk.  Apple has entered the spiders lair (or the Squid's garden).   Another way to look art it is that some TBTF counter party just reinforced their systemic importance by exposing Apple to its risk.

Tue, 04/30/2013 - 09:59 | 3513562 kaa1016
kaa1016's picture

I got you. I guess they figure they would be a top credit for a long time. We'll see.

Tue, 04/30/2013 - 09:20 | 3513414 orangegeek
orangegeek's picture

Apple has embarked on its long journey back to becoming a $2 stock as it once was.

 

Caveat emptor.

 

PS:  Apple makes overpriced hardware and sells it through retail - overheads don't match the product line up.

Tue, 04/30/2013 - 09:25 | 3513422 CharliePrince
CharliePrince's picture

goldman will destroy them over time.. thats what goldman does.  its in their business plan

Tue, 04/30/2013 - 10:01 | 3513576 sumo
Tue, 04/30/2013 - 09:35 | 3513449 CaptainSpaulding
CaptainSpaulding's picture

I cant wait for the new Gphone 5s

Tue, 04/30/2013 - 09:45 | 3513495 css1971
css1971's picture

Nokia have been doing prototypes for them. You can see what the new iPhone will look like here:

http://www.nokia.com/gb-en/phones/lumia/

Tue, 04/30/2013 - 09:43 | 3513483 css1971
css1971's picture

Steve Jobs is spinning at a steady RPM in the afterlife as the "growth company" dream is now officially over.

Even better. They're copying Microsoft's user interface design for the next revision of iOS. If that isn't a reversal I don't know what is.

Tue, 04/30/2013 - 09:54 | 3513527 Catullus
Catullus's picture

This is straight out of Steve Jobs play book. This is the man who would lease a car every 6 months to prevent having to put a license plate on the car.

Tue, 04/30/2013 - 13:12 | 3514496 edifice
edifice's picture

Also the same guy who wanted a helipad on both his property and the Apple Campus, so he wouldn't have to drive in rush-hour traffic (the request was denied by the city council).

Tue, 04/30/2013 - 09:47 | 3513515 Catullus
Catullus's picture

Not repatriating your earnings is the new capital flight.

So much for raising taxes to encourage growth. Well in something other than debt.

Tue, 04/30/2013 - 09:53 | 3513536 Diogenes
Diogenes's picture

Take all the profits offshore and spread them around various tax havens. Pay no tax on your profits. Invest the money for tax free returns.

Borrow money in the US for operating capital. If TSHTF you can walk away, leaving a big business with an even bigger mortgage.

I'm sure it's all just a tax dodge but could also be a long term zombie apocalypse bug out strategy.

Tue, 04/30/2013 - 09:56 | 3513541 Payne
Payne's picture

You have all of this cash earnings off shore, where is it safe from a Bail in or bail out ?  

Tue, 04/30/2013 - 11:46 | 3514087 drivenZ
drivenZ's picture

"forcing the company to raise even more cash to fund US-based capital decisions"

 

sort of...force is a strong word. They can bring the cash back they would just pay tax on it. Why would you bring the cash back and pay tax when you can borrow nearly free? If I was a shareholder and they didnt do this I'd be up in arms. It's simple capital budgeting. Typical ZH, damned if you do, damned if you don't.   

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