Apple, which hasn’t borrowed in dollars more than once in a calendar year since 2017, is tapping the investment-grade bond market for the second time since May.
Borrowing costs are so cheap right now that not even Apple Inc. can resist, becoming the latest to join a boom in issuance from the world’s biggest technology companies.
The iPhone maker is selling bonds in four parts, according to a person with knowledge of the matter. The longest maturity, a 40-year security, will yield 118 basis points above Treasuries, after initially discussing around 135 basis points, the person said, asking not to be identified as the details are private.
That debt will come cheaper for Apple than it did for Amazon, which priced at 130 basis points over Treasuries, but is still slightly more expensive than Google’s spread of 108 basis points.
Like almost all of Apple’s bond sales, it will use the money to buy back stock and pay dividends, among other general corporate purposes, the person said. JPMorgan Chase & Co., Barclays Plc and Goldman Sachs Group Inc. are managing the offering.
MacDailyNews Take: Free money is free money. Apple would be foolish not to partake.
Hey, with all of the money Goldman Sachs makes from Apple (credit cards, bonds, etc.), why don’t they hire a real Apple analyst instead of the bad joke they have now?
Apparently, Apple knows how to handle its finances. It’s still sort of annoying how Apple keeps taking on debt although it does make a lot of sense if interest is low. Apple is only paying out .73% yield for dividends, so it not as though Apple is having to stretch itself to pay dividends.
If you have the means taking on debt is never good, 2020 is very much uncertain times…
Thanks Apple if I buy anything this year or next it will be cash no new debt…..Long Apple….