Apple Plans To Issue $7 Billion Worth Of Senior Unsecured Bonds

Following the issuance of $5 billion in bonds in 2017, Apple recently announced that it will issue five batches of senior unsecured bonds due in 2022, 2024, 2026, 2029, and 2049, amounting to $7 billion.


Apple has not yet provided the specific size of the bond issuance, but it is said that the funds raised by the bond will be used for general commercial purposes, such as stock buybacks, dividend payments, support operation costs, capital expenditures, and so on.

Goldman Sachs, BofA Securities and Deutsche Bank Securities will be acted as bookrunners for the transaction. Apple's share price has risen 14.5% in the past three months, while the Dow Jones index rose 3.1%.

Apple has enormous cash flow, but like other technology companies, Apple generally refuses to take foreign cash back to the US to prevent elevated corporate taxes, but instead invests in corporate bonds, money market funds and US Treasury bonds, while Apple's most of the money reserves are in non-U.S. nations, for them, it is far more cost-effective to sell debt than to repay enormous taxes.

Post a Comment

Previous Post Next Post