Apple saves a cool $724 million with well-timed sale

“Apple Inc. (AAPL) could have hardly picked a better time to borrow an unprecedented $17 billion in its first bond sale since 1996,” Mary Childs reports for Bloomberg News.

“The world’s most valuable technology company is pocketing an initial $40 million in annual interest savings compared with current yields on the six bonds it sold, according to data compiled by Bloomberg,” Childs reports. “The yield on 10-year Treasury bonds, a benchmark for the entire fixed-income market, rose to 2.13 percent by the end of last week from 1.67 percent on April 30, the day of the offering, Bloomberg Bond Trader data show.”

Childs reports, “The iPhone maker will save $724 million compared with today’s rates over the life of the bonds, Bloomberg data show… ‘That’s real money, even to Apple,’ David Brown, a money manager who helps oversee $97 billion of fixed-income assets at Neuberger Berman in Chicago, said in a telephone interview. ‘I don’t know if it was insight or luck, but they timed the market very well, so they were able to capture some very attractive yields to finance their capital plan. Kudos to them.'”

Read more in the full article here.

MacDailyNews Take: Peter Oppenheimer is a genius.


  1. Bankers and socialists are creatures of the same ilk. One bilks borrowers and the other milks honest tax paying citizens. Both are vampiric blood suckers whose fangs are like serrated steak knives – all the better to cut you with and drain your blood.

    Both understand the concept of borrowed money = free money because repaying back borrowed money never enters their head, unless of course when the banksters run of money, that is when they run to the socialists for bailout money.

    At the end of the day, the burden falls on the honest citizen. One way or the other, the bankster and the socialist will get his pound of flesh.

    1. Your post is slightly over the top with the socialist paranoia and all, but it’s interesting. The concept of borrowed money=free money is definitely interesting. It’s a western, if not American, invention. One of the legs our economy stands on. To consider, however, is that in many eastern cultures, especially middle eastern, lending with interest is still technically illegal and certainly frowned upon, and look where it gets them…

    2. Better check your facts before you make a dogmatic statement. As of 05/31/2013, the federal government obligated $250.46B to banks and has received back from banks $270.90B.

    3. You are getting a bit stranger every week, BLN. I don’t care to respond to your socialist fetish. You can mess with that hogwash as you please.

      With respect to the ongoing problems with banks, I believe that the primary culprits are ill-advised deregulation combined with unmitigated greed by bank officials and investors. Traditional banks accepted deposits and issued loans with reasonable gaps between interest paid by the bank to borrowers and interest paid by borrowers on loans. Banks were steady and dependable institutions producing decent, but typically unremarkable profits year after year.

      Following the deregulation of banks, most modern banks have their fingers into all sorts of investing activities and investors have come to expect outsized profits. So banks borrow at rates below 1% and issue revolving credit at rates of 15% to 20% (or more) without even having the decency to be ashamed. With such a massive interest rate spread, most other issues (fraud, bad debt, risk) fade into the background until a major economic crisis hits. Then the consumer is expected to bail out the banks in order to stave off chaos and collapse. It is a rotten system.

    4. george bush started the bank bailout, are you calling my flag waving, cowboy boot wearing, freedom squelching, war mongering president a socialist???

      how dare you!

      there are only two types on this planet, the predators, and the predated

      your choice which you will be, by how diligent you watch for the predators, and how slyly you watch for the predated

  2. The point is that the bench mark rose after Apple incs. offering. The offering was so large that the impact it has made is to raise the benchmark by 0.46% after 30 days.
    It wasn’t that Mr. Oppenheimer made an astute judgement, it was the sheer weight of Apple incs. offering wot did it!

  3. Idiotic as it is for any company with $BILLIONS in the bank to borrow a penny, Apple has brilliantly turned this nonsense to its advantage in more ways than one.

    And yes US Congress: This is entirely or YOUR making, you blithering idiots. Repair the foreign made profit tax laws yesterday already and get that money into the USA! DUH.

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