Apple preps first Canadian-dollar debt offering to reward shareholders

“Apple Inc. is seeking to sell seven-year bonds in its first Canadian-dollar debt offering to fund stock buybacks, dividends and capital expenditures, according to a regulatory filing Tuesday,” Allison McNeely, Molly Smith, and Claire Boston report for Bloomberg.

“The technology company is targeting a minimum size of C$1.5 billion ($1.2 billion) for its single-tranche deal, according to people familiar with the matter,” McNeely, Smith, and Boston report. “The bonds may sell at a spread of about 83 basis points, plus or minus three basis points, over the benchmark yield, said the people, who asked not to be identified because the details are private.”

“It’s Apple’s sixth trip to the bond market this year after it issued $18 billion in the U.S. in three sales, sold $1 billion in Taiwan and offered euro-denominated notes,” McNeely, Smith, and Boston report. “S&P Global Ratings assigned an AA+ rating to the Cupertino, California-based company’s new issue. HSBC Holdings Plc, Royal Bank of Canada, Bank of Montreal and Goldman Sachs Group Inc. are managing the sale, according to the filing.”

Read more in the full article here.

MacDailyNews Take: Better to whip up some more free money than to repatriate at the current confiscatory tax rate.

Apple preparing new euro bond sale to fund capital return program for shareholders – May 17, 2017
Apple issues $7 billion in corporate bonds – May 12, 2017
The fact that Apple has to issue bonds is a reminder of why urgent U.S. tax reform is needed – May 12, 2017
Apple borrows billions while sitting on massive overseas cash mountain – May 10, 2017
Why Apple is investing $148 billion in corporate debt – May 4, 2017
President Trump’s tax reform plan includes deep cuts in corporate taxes – April 26, 2017
Apple raises $10 billion in debt ahead of President Trump’s repatriation tax plans – February 3, 2017
After Apple’s blowout earnings, the Street looks toward ‘iPhone X’ and President Trump’s tax reforms – February 3, 2017
President-elect Trump’s corporate tax reform expected to have some positive impact on Apple EPS – January 14, 2017
Apple has now amassed nearly $80 billion in debt – September 12, 2016


  1. “Better to whip up some more free money than to repatriate at the current confiscatory tax rate.”

    There is no such thing as free money, and anyone who thinks there is truly is a fool!

    Yes, pile on more debt Mr. Cook. Do it to appease the big institutional investors. Do it to pump up the stock sale price for you and your senior staff (with no direct effect on Apple or its customers). Do buybacks to make them think their shares have a measureable larger chunk of Apple. Do it so their dividends are up and they can claim higher “returns”.

    Yes. Put the company further into debt and focus on the bean counters rather than focusing on moving the product base forward by leaps and bounds. Unless a repatriation day with vastly reduced tax rates happens fairly soon, Apple will have more debt on its books than even the bean counters will like.

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