Apple debt offering only $12 billion

“Apple Inc. is marketing $12 billion of bonds in the U.S. as the iPhone maker seeks a cheaper alternative to reward shareholders than overseas cash that’s subject to repatriation taxes,” Sarika Gangar and Matt Robinson report for Bloomberg.

“The company may sell notes as soon as today, according to a person with knowledge of the transaction. Apple plans to issue both floating- and fixed-rate notes with maturities of three and five years in addition to fixed-rate notes due in seven, 10 and 30 years, said the person, who asked not to be identified because terms aren’t set,” Gangar and Robinson report. “By taking on more debt, the world’s largest technology company by stock-market capitalization is sticking to its efforts to keep its U.S. tax bill low. Borrowing costs in the bond market are much lower than the levy on any money repatriated on Apple’s balance sheet that’s considered to be held overseas. Of the $151 billion Apple has in cash and marketable securities, about 88 percent is held offshore.”

“‘They don’t want to pay the tax to bring it back to the U.S.,’ said Matthew Duch, a fund manager at Calvert Investments in Bethesda, Maryland, which oversees more than $12 billion in assets, and is considering buying part of today’s offering. ‘The market is giving them very cheap money,'” Gangar and Robinson report. “The company’s strong growth and international expansion in recent years has built up ‘substantial offshore cash balances,’ Luca Maestri, who will soon take over as Apple’s chief financial officer, said on the earnings call. ‘To repatriate our foreign cash under current U.S. tax law, we would incur significant tax consequences and we don’t believe this would be in the best interest of our shareholders,’ Maestri said.”

Read more in the full article here.

Related articles:
Apple about to join the ranks of the biggest U.S. corporate debtors – April 29, 2014
Apple readies blockbuster $17 billion debt sale – April 28, 2014
Apple plans another massive debt sale to fuel new share repurchases, dividends – April 25, 2014


  1. If I was offered to take on a debt of $12 billion in my dreams, I would never need to work again!!!!

    eeh!!! hang on a minute……….
    Am I having a nightmare???????

    zzzzzzzzzz, snorrrrrrrrr, sleep bloggingzzzzzzzzz!!!!!

    1. I think it worked better, and I liked you better, when you were fully awake and contributing to the techno sphere. Asleep, your lurid dreams are something of an embarrassment. Please come back to us with your lucid imaginings. You are wearing out the letter z.

      1. I think I hear my alarm clock ringing!

        I normally set it to snooze alarm so I should be awake properly in the next hour or so, meantime, I will engage in some REM sleep!
        Thank you hjs!

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