“Apple has raised $10 billion in debt through a nine-part bond sale of both fixed and floating rate notes, according to the company’s final pricing term sheet filed with the U.S. Securities and Exchange Commission on Friday,” Joe Rossignol reports for MacRumors.
“Apple held $246.1 billion in cash and marketable securities last quarter, but around 94% of that money is held overseas and would be subject to high U.S. taxes upon repatriation— something U.S. President Donald Trump plans to change,” Rossignol reports. In the meantime, by raising debt through bonds, Apple can pay for its U.S. operations at a much lower rate, particularly given its low-risk Aa1/AA+ bond credit rating.”
Rossignol reports, “Apple typically uses the capital raised to fund dividend payments to shareholders and its share buyback program.”
Read more in the full article here.
MacDailyNews Take: Free money is free money. Might as well generate it!
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Apple has now amassed nearly $80 billion in debt – September 12, 2016