This page has been archived and commenting is disabled.
Apple Launches $12 Billion Debt Offering: 30% Smaller Than Last Year's Bond Bonanza
Despite explaining that the Apple debt offering would be of similar size as last year's epic $17 billion bond issue, the seven-part offering only managed to issue $12 billion. While still considerable in the world of corporate bond issuance, this is a notable drop for a firm that was so adamant about releveraging to turnover its cash to shareholders...
- *APPLE TOTAL DEBT OFFERING SIZE $12B
The deal's longer-dated bonds came a little cheaper than last year's also at 10Y +77bps and 30Y +100bps and only 29% of the issue was long-dated (as opposed to 50% last year). We remind readers that following last year's huge deal, equity markets weakened notably in the weeks after (and it seems the rate-locks on today's issue are already being lifted in Treasury markets as rates fall).
Full 7-part-offering:
- *APPLE $1.5B 3Y FIXED NOTES LAUNCH AT +18
*APPLE $1B 3Y FRN LAUNCH AT 3ML+7
*APPLE $2B 5Y FIXED NOTES LAUNCH AT +37.5
*APPLE $1B 5Y FRN LAUNCH AT 3ML+30
*APPLE $3B 7Y FIXED NOTES LAUNCH AT +60
*APPLE $2.5B 10Y NOTES LAUNCH AT +77
*APPLE $1B 30Y BONDS LAUNCH AT +100
Cheap - but not as cheap as last year's deal. Also of note is the fact that half of last year's issuance ($8.5bn of $17bn) was in 10 year bonds or longer maturity and only 29% this time ($3.5bn of $12bn).
»
- 4732 reads
- Printer-friendly version
- Send to friend
- advertisements -
Why does AAPL launch a bond? Some optimal balance sheet stuff...but still..
Why would anyone buy this bond? It gives some yield....
everything steve jobs worked for is just a tax dodge.
I BONDage
Don't forget, perfectly timed with insider selling...
See Dr. Engali below
Why why why???
I thought they had such an increadible amount of cash on the "sidelines"??
Crooks!
Because new debt is essentially free in the current bond market.
Pardon my re-post. I posted this on a previous thread in response to this question:
It is much more efficient to avoid paying taxes by taking on debt rather than repatriating that cash. They will pay 3.5 % to service their debt vs paying 40% in taxes if they were to repatriate their cash hoard. Since this is a global issue, once they have the debt they can service it in any manner they wish. They can take the now domesticated cash to reward insiders and share holders with a dividend or buybacks without facing any tax consequences. More than likely a combination of both.
It's fucked up and they are another example of a hypocritical liberal company who will support any liberal project that gubbermint comes up with but then they avoid paying for it.
Now that they have run out of innovative ideas, and they never did make anything thanks to Foxconn's sweat shops it's time to loot the company and Joe six packs 401k so that the insiders and the bankers can get paid.
Ok. Makes sense. Thanks.
Nice explanation. Now explain it to all the anti-capitalist liberals once they look up from their iphones.
Corporate money laundering all legal by way of our corrupt CONgressional laws.
Taxes are a punishment for anyone too poor to afford a good accountant.
Emphasis on LOOT.
Apple, now with 30% fewer expectations for growth!
Yes. The Apple fan base is growling about a number of technical issues that aren't being addressed. One example is the mess surrounding iCloud. As more people get tech saavy, they realize they don't need the iPhone walled garden approach. The non-removeable iPhone battery is getting to be more of an issue with people who are caring less about looking trendy. Many are looking closer at Android and even the BlackBerry line ,like the Z10 and Z30, which still have the best security, great battery life, and now have the ability to run most Android apps.
You lost everyone at Blackberry.
The average joe 6 pack taxpayer in the US is so happy.
Must be nice to skip paying taxes
401k, pension, and MyRA lambs being lead to the slaughter.
I wish I had the presstitutes talking about my company and products every night on national and local "news" shows. If they did that for me, I wouldn't need to issue any friggin debt offerings.
Total buy. My 30 year Honeywell, Burroughs, and Atari bonds are still paying out! Great investments!