Apple Looking to Raise $3.5 Billion From Bond Sale Involving Euros [Updated]
Following yesterday's report that Apple was preparing to hold a new bond sale that includes a component denominated in euros, the company today filed a prospectus with the Securities and Exchange Commission outlining its general plans, which include two chunks of debt with staggered maturities. The Wall Street Journal has more details on the prospectus and how its yields will be the lowest ever for 8-year and 12-year debt:
The iPhone maker is seeking to raise at least €1 billion ($1.2 billion) from two chunks of euro debt maturing in eight and 12 years.
Those would beat the lowest yields ever paid for euro-denominated, corporate bonds of these maturities, according to Dealogic data, reflecting solid confidence that the bonds represent a safe bet. Bankers managing the bond sale suggested the eight-year notes will give investors a yield of roughly 1.1% and the 12-year notes around 1.7%.
Apple spoke with investors on Monday about issuing bonds and will use the proceeds of the sale for general corporate purposes, including share buybacks and dividend payments.
This would mark first time that Apple would begin issuing bonds in euros, with Deutsche Bank and Goldman Sachs arranging the sale. This past April, Apple held a $12 billion bond sale, which followed a record $17 billion sale last year. Apple's bond offerings are a part of its expanded capital return program, which primarily involves a major stock buyback program and a quarterly dividend that aims to return more than $130 billion to shareholders by the end of 2015.
Update: The Wall Street Journal has revised its article to note Apple is actually looking to raise €2.8 billion ($3.5 billion) in the bond sale.
Popular Stories
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
The iMessage service that Apple users to send messages to one another appears to be down for some users, and messages are failing to go out or are taking an extra long time to send. There are numerous reports about the issue on social networks and a spike of outage reports on Down Detector, but Apple's System Status page is not yet reporting an outage. Update: Apple's status page says...
Apple today previewed new accessibility features coming with iOS 18 later this year, and this includes some new options for CarPlay. Apple highlighted three new features coming to CarPlay: Voice Control: This feature will allow users to navigate CarPlay and control apps with just their voice. Color Filters: This feature will make the CarPlay interface visually easier to use for...
Today is the official launch day of the new iPad Pro models, and these updated tablets mark the biggest feature and design refresh that we've seen for the iPad Pro in several years. We picked up one of the new 13-inch models to check out everything new. Subscribe to the MacRumors YouTube channel for more videos. When it comes to design, Apple is still offering 11-inch and 13-inch size options ...
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the iPhone 16 Pro Max alongside an actual iPhone 15 Pro Max. Dummy...
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...
Top Rated Comments
Obviously you were just trying to be clever and don't know much about finance.
If you assume the Euro might be worthless soon, then taking debt in Euro is not a risk. As the Euro falls, your debt (measured in USD) decreases.
The risk, however, is that the Euro is somewhat low at the moment. If it gains (the USD falls), the debt will increase.
Generally speaking, EUR/USD is somewhat stable, though. It has been circling 1.30 EUR/USD for a decade.
*snicker*
You mean that currency that was designed to be 1:1 to the US$, but dropped to $0.8 after its introduction and then climbed to be over $1.50. And then in the American induced crisis went down to fluctuate mostly between $1.30 and $1.40? That currency?
You shouldn't believe all that you see on Fox mate. In fact, you probably shouldn't believe anything you see on Fox, but that's a different discussion.
So I'm guessing that you don't have any money that is saved in a Money Market account, a savings account, or a checking account that pays interest? What about CDs? All of these will not make money over inflation (in a typical inflation year - obviously not when it's 0%), yet people keep their money in them due to the fact that they are safe and liquid.
Buying these bonds, while they may not be as liquid, is a safe investment that could be sold before maturity if needed. You get a better rate with these bonds than the majority of accounts that are available that I listed above.
Personally, I agree with your statement that I wouldn't buy them just because I prefer riskier investments but there is definitely a place in the market for these and they will be bought up quickly when they go to market.