Apple Seeks To Raise Money Via Debt For Buyback And Dividends

• Apple Inc. (NASDAQ: AAPL) is planning to raise debt via four different notes, with the most extended portion of the offering being 40-year security.

• The four notes are for the period ending 2029, 2032, 2052 and 2062.

• The longest portion of the offering, 40-year security, may yield around 150 basis points over U.S. Treasuries, reported Bloomberg citing a person familiar with the matter.

• The company intends to use the proceeds for general corporate purposes, including common stock repurchases and payment of dividends under our program to return capital to shareholders.

• AAPL also stated that it might temporarily invest funds that are not immediately needed for these purposes in short-term investments, including cash, cash equivalents, or marketable securities.

• Terms of the offering were not disclosed.

• As of June 25, 2022, APPL had $108.7 billion of unsecured senior notes and $11.0 billion of unsecured short-term promissory notes outstanding but no secured senior debt outstanding.

• Goldman Sachs & Co. LLC (NYSE: GS), BofA Securities (NYSE: BAC), and J.P. Morgan (NYSE: JPM) are the joint book-running managers.

• Price Action: APPL shares are trading lower by 0.57% at $161.59 on the last check Monday.

• Photo via Wikimedia Commons

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