toggle

AAPL Stock: 113.29 ( + 0.37 )

Printed from http://www.macnn.com

Apple sells $12 billion in US bonds, takes over $40 billion in orders

updated 09:32 am EDT, Wed April 30, 2014

Company likely planning second sale

Apple put forward a seven-part bond offering on Tuesday worth $12 billion, Reuters reports. Proceeds will help finance Apple's stock buyback program, which is being expanded from $60 billion to $90 billion. The $12 billion value is below the $17 billion that was expected, since Apple's own Luca Maestri said the company would raise "an amount of term debt financing similar to what we used in 2013."

It's thought however that Apple may be planning to turn to foreign debt markets for the remainder. That would allow diversification, including preventing the US debt market from becoming too saturated. Rumors mentioned by Reuters point to a eurozone sale of another $7 billion in bonds, where Apple will be able to take advantage of low interest rates.

The $12 billion on offer has already generated over $40 billion in orders, probably in no small part because of their double-A-plus rating. The bonds are divided into fixed-rate offerings that mature in three, five, seven, 10 and 30 years, along with three- and five-year floaters.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented