Apple selling debt in the U.S. blue-chip bond market Monday ahead of key U.S. inflation readings due to be released later this week.
Olivia Raimonde and Dayana Mustak for Bloomberg News:
The $5 billion deal is expected to come in as many as five parts, according to a person familiar with the matter. The longest portion, a 30-year bond, could yield 135 basis points over comparable Treasuries, the person said.
The sale will be the first for Apple since it sold $5.5 billion to fund buybacks and dividends in August.
As many as 15 borrowers could emerge to sell debt Monday, looking to lock in funding before the release of consumer price index and producer price index data slated to come Wednesday and Thursday.
Proceeds from Apple’s sale will be used for general corporate purposes. That could include stock repurchases, dividend payments, working capital, capital expenditures, acquisitions and repayment of debt, the person said.
MacDailyNews Take: Theses Apple “iBonds” will be sold out immediately.
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Apple now has over 150 billion in debt. Interest rates are rising all the time so Apple has to cough up more coupon fees to live it’s debt engourged life.
Can someone explain to me why a company with supposedly tens (hundreds?) of billions in cash needs to borrow billions more?
Wow, writer, really? You can’t figure that out?
For all you Dementia Joe voters: Because the cost of borrowing is lower than the cost of investment performance or their money is used for better purposes than paying low cost interest.