“Apple Inc. is selling $12 billion of bonds to return capital to shareholders in the second-largest corporate debt offering in the U.S. this year,” Aleksandra Gjorgievska reports for Bloomberg. “The iPhone maker will sell the securities in 9 parts, with the longest-dated bonds maturing in 30 years, according to a person with knowledge of the matter. Proceeds will also back general corporate purposes, including acquisitions and repayment of debt, said the person, who asked not to be identified because they aren’t authorized to speak on the issue.”
“Apple is proposing to sell $2.5 billion of 30-year bonds at a yield of 2.05 percentage points more than similar-maturity Treasuries, said the person,” Gjorgievska reports. “The company’s also planning to sell $2 billion of 10-year bonds at a yield of 1.5 percentage points more than similar-maturity Treasuries, according to the person, which is a 30 basis-point premium compared to similar bonds, Bank of America Merrill Lynch data shows.”
“Apple is also marketing seven-year green bonds, debt that typically backs clean energy and other sustainable initiatives. This is the company’s fifth multibillion dollar offering since 2013. It issued $8 billion in bonds in May to boost shareholder capital,” Gjorgievska reports. “Apple’s offering comes as the markets reopen after a week where issuance of corporate bonds was frozen amid renewed concerns about the health of the global economy. ”
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MacDailyNews Take: More free money!
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