Apple is planning to issue debt via investment-grade bonds on Monday, Bloomberg News reports citing “a person familiar with the matter. It is Apple’s first time selling corporate bonds in two years.
The iPhone maker is looking to issue debt in as many as four parts, with initial price discussions for the deal’s longest portion, a 10-year note, in the area of 0.7 percentage point above Treasuries, said the person.
The deal comes in a week where bankers are expecting to see $35 billion to $40 billion in new issuance, with industrial and technology firms like Apple potentially accounting for the bulk of sales.
Barclays Plc, Bank of America Corp., Goldman Sachs Group Inc., and JPMorgan Chase & Co. are managing Apple’s bond sale, which is expected on Monday, the person said, asking not to be identified as the details are private.
MacDailyNews Take: iBonds!
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Is selling its own bonds is good or bad for apple 🍎?.
Bad.
One of the first things Steve Jobs did when he came back to Apple near the end of the Dark Days was to reduce Apple’s debt to ZERO. People try to say it’s financially beneficial to Apple to carry $100 billion in debt. That’s BS. No matter how you look at it the interest rate burns more money than Apple could use to productively create more and better products. Apple has enough cash on hand to do huge stock buybacks that really don’t move the needle with regard to valuation.
I would recommend the James Bonds, but nowadays mayb ethe Bondi Bonds are a better deal!
My analysis indicates that this market is being shaken, not stirred.