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  • Apple Reportedly Planning to Debut its Swiss Franc Bond Sale


    Apple appears to be set to continue expanding its debt offering program as the company reportedly plans a new sale of bonds denominated in Swiss francs. The move is designed to take advantage of the extremely low yields available in the market. The size and maturity of the offering haven’t been decided yet but a 10-15 year bond could possibly fetch a yield of less than 0.5% according to The Wall Street Journal. Both Goldman Sachs and Credit Suisse have been retained to oversee the deal.

    Any yield below 0.5% would be a significant discount even from the extremely low rates Apple saw on its euro-dominated offering from the end of last year. The sale raised $3.5 billion and saw the company pay 1.1% on 8-year notes and 1.7% on 12-year notes. UBS credit strategist Thibault Colle told the WSJ the following regarding the matter:

    Much like in the euro market, we think retail demand for Apple bonds will be strong in the Swiss franc market.
    This next move would be Apple’s second bond issue of the year. The company raised $6.5 billion last week with roughly a 2.5% yield for 10-year notes and a 3.5% yield for 30-year notes. For those of you who didn’t know, Apple uses debt primarily to finance its $130 billion capital return program as the cost is substantially less than tax burden that would be incurred by repatriating some of the more than $140 billion in cash that Apple currently holds overseas. Apple is expected to announce an update to the capital return program during its quarterly earnings call in April, we’ll just have to wait and see.

    Source: The Wall Street Journal