Apple has sold $14 billion in bonds in order to tap into current cheap borrowing costs, Bloomberg reports.
This money will reportedly be used for buying back stock and paying dividends, as well as giving Apple more working capital.
The report notes that Apple is:
“tapping the market for a third time since May as it looks to return more cash to shareholders. The company issued debt in six parts. The longest portion of the offering, a 40-year security, will yield 95 basis points above Treasuries, after initially discussing between 115 and 120 basis points, according to a person with knowledge of the matter, who asked not to be identified as the details are private.”
Interestingly, the report notes that Apple’s $14 billion raised is more money than 93% of non-finance S&P 500 companies have on their balance sheets. Apple currently has a massive cash pile worth $196 billion.
The company is just coming off a record quarter for earnings. This is the first quarter in Apple history in which it earned $100 billion+ in a single three-month period.