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  • Apple Prepares $17B Bond Sale to Fund Share Buyback


    According to the Financial Times, a year after Apple turned to the bond markets to fund itís capital repurchase program, the company is planning to do it again- except this time, with a sale price reportedly to be the second highest in corporate history. Financial Times has reported that Apple has a massive $17 billion bond sale in the works which will target U.S. and International markets. The cash will help Apple increase the share buyback efforts.

    Luca Maestri, Apple Corporate Comptroller, stated that Apple will likely increase "an amount of term debt financing similar to what we used in 2013." It was only a year ago that the company announced a six-part $17 billion bond offer that was the largest in corporate history. That bond sale has since been exceeded by Verizonís sale of $49 billion bonds back in 2013. In order to fund its share buyback program, Apple has taken debt allowing it to keep a strong cash position without having to pay high taxes on overseas money.

    Although Apple has about $150 billion in cash, $130 billion of it is held overseas. The company not only has to buy shares back with domestic cash, but executives of Apple have said that they would prefer to stay with a liquid cash position to have flexibility options. According to Financial Times, Apple is likely to target Eurozone for low interest rates for its foreign debt sale.

    Source: Financial Times
    This article was originally published in forum thread: Apple Prepares $17B Bond Sale to Fund Share Buyback started by Akshay Masand View original post
    Comments 1 Comment
    1. quidam_brujah's Avatar
      quidam_brujah -
      Selling $17 billion in bonds to buy back shares?
      And 3 years from now it will be issuing more shares to pay off bonds? Because, rather than pay taxes to anyone, they'd rather keep the money in the bank and, like Cisco, ***** about how taxes are oh so killing them even though at ~26% it's less than mine and I'm getting by fine (while not being a multinational multibillion dollar corporation.)
      The only reason something like this makes sense is because of the stupid casino rules we have that govern our economic system.