Apple plans $5 billion bond sale; fourth since 2013

“Apple Inc. sold $6.5 billion in bonds, after boosting the deal by 30 percent, in the iPhone maker’s fourth major debt offering in the past two years as it preserves its overseas cash hoard,” Cordell Eddings reports for Bloomberg.

“The company sold the securities in five parts, with the longest portion maturing in 30 years, according to data compiled by Bloomberg. The deal will be used for stock repurchases, dividend payments and debt repayments, according to a person with knowledge of the matter,” Eddings reports. “Apple has issued the equivalent of $39 billion of bonds since April 2013, when it sold $17 billion in what at the time was the biggest corporate-bond offering ever. The Cupertino, California-based company’s previous debt deal was a sale of 2.8 billion euros ($3.17 billion) in November that allowed it to fund shareholder rewards without using cash from abroad that would be subject to U.S. repatriation taxes.”

Eddings reports, “‘The company is building on the momentum of a strong past couple of weeks,’ Jody Lurie, a corporate credit analyst at Janney Montgomery Scott LLC in Philadelphia, which manages $61 billion in assets, said in a telephone interview. ‘They are being advantageous with the current environment.'”

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