“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!
Apple preps first Canadian-dollar debt offering to reward shareholders – August 15, 2017
Apple preparing new euro bond sale to fund capital return program for shareholders – May 17, 2017
Apple issues $7 billion in corporate bonds – May 12, 2017
The fact that Apple has to issue bonds is a reminder of why urgent U.S. tax reform is needed – May 12, 2017
Apple borrows billions while sitting on massive overseas cash mountain – May 10, 2017
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
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Apple has now amassed nearly $80 billion in debt – September 12, 2016