Apple files prospectus to offer more debt, with maturities of 3 years to 30 years

Tomi Kilgore for MarketWatch:

Apple Inc. has filed Wednesday a prospectus for the issuance of debt, with maturities ranging from 2022 to 2049.

Apple said it plans to use the proceeds from a debt offering for general corporate purposes, which includes stock repurchases and dividend payments, and funding for working capital, capital expenditures, acquisitions and repayment of debt.

As of June 29, Apple had total term debt of $98.32 billion… The underwriters are Goldman Sachs, BofA Securities and Deutsche Bank Securities.

Molly Smith for Bloomberg:

Apple, which has more than $200 billion in cash and equivalents, is selling senior unsecured bonds in as many as five parts, according to a person with knowledge of the matter. The longest portion of the offering, a 30-year security, may yield around 1.25 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.

MacDailyNews Take: Very low borrowing costs – free money! – make the issuance of new bonds a no-brainer for Apple.


    1. Yes, indeed! Selective reporting with biased one-liner opinions tacked on has proven this over and over.

      Here’s more proof:

      The plot in that article should be alarming to everyone.
      Rough rounding shows that the US national debt rose from ~ $15T to $19T from 2012 to 2016. Pretty horrible, digging about a trillion per year into the hole.

      But did the 2016 election change anything for the better? The US national debt rose from ~ $19T to $23T today. $4T in only three years. That’s digging the national debt 33% faster than the prior administration. But on this site, the Chosen One is excused for being the most lying fiscally irresponsible leader ever. $1.3 Trillion in the red every year. What do you know, Businessman President runs the country like he runs his casinos, and his own party lets him get away with it!

      Maybe Tim Apple will be called upon to lend some money to bail out the US in the foreseeable future. The situation today appears eerily like the early 1890’s, when a run on banks was triggered by unwise tariffs . Thanks to unwise protectionism, the federal government practically ran out of operating capital and had to borrow $65 million from J.P. Morgan and the Rothschilds. Or shall we just issue more worthless script for our children to pay off in addition to our outrageous health care bills and the US’s obscene military foreign adventure costs?

  1. Is the rationale for borrowing, when a business is cash-rich, solely b/c the business can make more $$ leaving the cash alone (“working in other ways”), vs the cost of leveraging (borrowing more)?
    Though mostly apples and oranges, isn’t debt addition contradictory to the aim to be “cash neutral”?

    1. JoJo: I get that, but doesn’t it necessarily mean that Apple’s 200billion dollars in cash reserves is “busy” making some $$ and AAPL needs/wants to employ more money (leveraged) to make more?

  2. It is called the modern Wall Street, Ivy League, MBA, way of thinking, that is what is working inside Apple’s finance department these days and that why all that money when down the stock buyback blackhole.

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