“Apple Inc. has joined Tesla Inc. and Amazon.com Inc. in tapping the corporate-bond market this week, with a ‘maple bond’ deal, its first foray into the Canadian market,” Ciara Linnane reports for Marketwatch. “The iPhone maker sold C$2.5 billion ($1.9 billion) in 7-year senior unsecured notes that carry a coupon of 2.513%, according to a filing with the Securities and Exchange Commission.”

“The deal priced at 80 basis points above the Canadian government’s 7-year bond, according to the Globe and Mail, and is the biggest maple bond deal ever,” Linnane reports. “The proceeds of the Apple deal will be used to fund the company’s shareholder return program, as well as for general corporate purposes, working capital, acquisitions and repayment of debt, said the filing. Apple had $96.6 billion of unsecured senior notes and $12 billion of unsecured short-term promissory notes outstanding, as of July 1.”

“Apple has repeatedly tapped the bond market to fund the investor return program it launched in 2012, preferring to take on debt rather than repatriate foreign cash holdings that would be subject to a 35% corporate tax rate,” Linnane reports. “President Donald Trump has pledged to implement a lower one-time repatriation tax to encourage U.S. companies to bring home their cash as part of a wider tax reform, but the timing of that move remains uncertain…”

Read more in the full article here.

MacDailyNews Take: Hopefully, a repatriation deal and corporate tax reform comes sooner than later!

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Apple issues $7 billion in corporate bonds – May 12, 2017
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Why Apple is investing $148 billion in corporate debt – May 4, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
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