Apple shares gained Thursday after the world’s most-valuable company filed plans to raise billions in the bond market that could be used to boost shareholder returns, including dividends and buybacks.
In papers filed with the Securities and Exchange Commission Thursday, Apple said it may sell four different notes, ranging in maturities from seven to forty years, with proceeds directed to “general corporate purposes, including repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures, acquisitions and repayment of debt.”
TheStreet‘s founder, Jim Cramer, said a successful long-bond offering, priced at a yield premium to U.S. 30-year Treasury bonds, would allow Apple to “buy back an insane amount of stock.”
— Jim Cramer (@jimcramer) July 29, 2021
Apple raised $8.5 billion in a four-part bond sale last year that included maturities of 2030 and 2050, with coupons ranging from 0.75% for their three-year paper and just 1.75% for their benchmark 10-year notes. Since then, it has tapped the market three more times — not including today’s plans — including a $14 billion sale in February.
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