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  • Apple Announces a New Two-Billion Euro Debt Offering


    The US Securities and Exchange Commission recently announced a new two-billion euro debt offering (which equates to roughly $2.26 billion) as it continues to take advantage of historically low interest rates. The Cupertino California company is offering two bonds that are set at 1 billion euros, each of which are slated to mature on January 17, 2024 and September 17, 2027. Yields on the euro-denominated bonds are expected to hit 1.426% for the 9-year notes and 2.040% for the 12-year notes, with annual interest payments set to start next year on January 17 and September 17 respectively.

    Goldman, Sachs & Co., Deutsche Bank, JP Morgan Securities and Merrill Lynch International are underwriting Apple’s latest bond issuance while Citigroup Global Markets Limited and Credit Suisse Securities (Europe) Limited are acting as co-managers. The debt offering is dated for September 10, 2015 and currently holds a settlement date of September 17 with denominations set at 100,000 euros. Any buys in excess of 100,000 euros will be completed at integral multiples of 1,000 euros.

    For those of you who didn’t know, Apple is turning to debt markets to help raise funds to buy back stock and issue dividends as part of its capital returns program. Despite the company having more than $190 billion in offshore assets but is opposed to repatriating the cash due to high US tax rates. Apple has ended up raising more than billions of dollars from bond sales, denominated in US dollars, Japanese Yen, Swiss francs, euros and British pounds.

    As of right now, Apple is planning on returning $200 billion to shareholders through dividends and stock buybacks by the end of March 2017.

    Source: SEC via AppleInsider
    This article was originally published in forum thread: Apple Announces a New Two-Billion Euro Debt Offering started by Akshay Masand View original post