| Cult of Mac

Apple raises cash in the bond market

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International governments plan to rethink tax rules for the ‘digital age’
International governments plan to rethink tax rules for the ‘digital age’
Photo: Pixabay/Pexels CC

Apple intends to borrow money by issuing corporate bonds. It filed a partial prospectus for these today with the SEC. Though what it intends to spend the money on is a bit of a mystery.

The iPhone maker hasn’t needed to run up any debt since early 2018, when it brought home about $250 billion it had socked away overseas.

Apple plans to exploit low interest rates in Swiss franc bond sale

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Apple is ready for another huge bond sale. Photo: Cult of Mac
Apple is ready for another huge bond sale. Photo: Cult of Mac

Apple is sitting on more cash than King Midas could dream of, but instead of bringing that money back to the U.S. to fund stock buybacks, Apple is reportedly looking to exploit Switzerland’s low interest rates with a Swiss Franc bond sale.

Goldman Sachs and Credit Suisse have been hired to manage the potential sale, reports the Wall Street Journal, which says the new bond sale could come as soon as Tuesday.

Apple could fund stock buyback with $5 billion bond sale

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James Bond
The name's Bond. Bond sale. Photo: United Artists
Photo: UA

Apple is reportedly planning to unload $5 billion worth of bonds in its fourth multibillion-dollar debt offering in two years, according to Bloomberg.

The news outlet is reporting that the deal could happen as early as today, with proceeds used for stock repurchases, dividend payments and debt repayments. Apple sold $17 billion of bonds in April 2013, in what was then the largest corporate bond offering of all time. Since then it has issued $32.5 billion of bonds in total.

Apple reportedly plans investor call for third bond sale

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There's money in them Cupertino hills. Photo: Kevin Spencer/Flickr CC
There's money in them Cupertino hills. Photo: Kevin Spencer/Flickr CC

Apple is reportedly planning an investor call for later today ahead of a possible bond sale, according to The Wall Street Journal

This would be the third bond sale in the company’s history, and may be the first in which Apple issues bonds in euros rather than dollars.

In its earnings call in April, Apple acknowledged that the majority of its cash and securities are held offshore. Since repatriating this money would incur heavy U.S. taxation, it’s cheaper for Apple to raise money through bond sales. The euro in particular represents a very good deal, since it is currently at its lowest rate relative to dollar-denominated debt in six years.