“Apple Inc. is back in the bond market,” Mike Cherney reports for The Wall Street Journal. “The company is looking to complete an $8 billion bond sale on Wednesday. One investor said the deal received about $20 billion in orders from buyers, allowing the company to sell more than the roughly $6.5 billion that investors initially expected.”
“The company says it will use the proceeds to help pay for share buybacks and dividends, part of an expanded capital-return program for shareholders the company announced last month,” Cherney reports. “Apple is offering the bonds in seven parts, with maturities ranging from two to 30 years.”
“A 10-year bond from Apple is being offered to yield 1.00 percentage point more than comparable Treasurys, while a 30-year bond is being offered to yield 1.40 percentage points more than Treasurys,” Cherney reports. “Some outstanding Apple bonds traded slightly lower in price, and higher in yield, on Wednesday morning, as some investors sold in anticipation of the new deal.”
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“Apple keeps piling up the debt – and investors keep running,” Matt Krantz reports for USA Today. “Shares of Apple are down 66 cents, or 0.5%, to $125.14. That means investors have seen $53.2 billion in market value evaporate since the shares hit their all-time high just a few weeks ago.”
“Apple’s infatuation with debt is getting interesting,” Krantz reports. “Apple has gone from having no debt as recently as early 2013 – to being loaded with more than $40 billion of it.”
Read more in the full article here.
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