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.
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.