Apple recently fueled excitement among investors on the US bond market this week when the company brought forward a sought after seven-part bond offering which was valued at $12 billion to help fund its share repurchase plans. The bond sale recently issued was less than the $17 billion the company sold in a record setting offering a year ago. Investors believe that Apple isnít done yet as the company signaled during its quarterly earnings conference call last week that it would likely raise ďan amount of term debt financing similar to what we used in 2013,í according to Corporate Comptroller Luca Maestri.

The expectation is that Apple will also plan to turn to foreign debt markets in addition to the recent $12 billion bond sale. This would allow the company to diversify its base and to prevent saturation of the US debt market with such a large sale. Investors believe Apple is waiting to come to market with potential issues in euros or sterling in the near future according to Reuters. Itís rumored that Apple will target the Eurozone for low interest rates on an additional bond offering of around $7 billion.

As of right now, Appleís $17 billion sale from a year ago marks the second-highest bond offering in corporate history. At the time Apple held the record but it was eclipsed by Verizonís sale of $49 billion in bonds later in 2013.

The recent sale generated excitement, more than $40 billion worth of orders in midday trading. Appleís bonds are double-A-plus, which is the second-highest possible rating. The company sold fixed-rate bonds that mature in three, five, seven 10 and 30 years along with three- and five-year floaters. Though Apple has some $150 billion in cash, almost all of that - $130 billion - is held overseas. Executives from the company have signaled numerous times, including last week, that they have no plans to repatriate the overseas cash, citing high tax rates for bringing the money to the US.

As a result, the Cupertino California company has sought out more cash to increase its share buyback efforts, which are now totaled at $90 billion through the end of 2015. Apple initiated its massive capital reinvestment program to signal to investors that it is confident in the future of its business with continued strong iPhone sales and new products on the horizon.

Source: Reuters via AppleInsider