Apple has returned to the bond market in an offering that could top $14 billion USD.
A new report from Bloomberg explains that the Cupertino company is taking advantage of the low interest rate environment and issuing six tranches of debt, with the longest portion of the offering being a 40-year bond. The 40-year issue will yield 95 basis points over treasuries, Bloomberg said, citing a person with knowledge of the matter.
The tech giant issued the debt in six parts. The longest portion, a 40-year security, will yield 95 basis points above Treasuries, after initially discussing between 115 and 120 basis points, the article adds.
This will be Apple’s third debt offering since May. The proceeds from the offering will be used for general corporate purposes, including stock buybacks and dividend payments, capital expenditures, and acquisition and repayment of debt.
Interestingly, the report notes that Apple’s $14 billion USD raised is more money than 93 percent of non-finance S&P 500 companies have on their balance sheets. Apple currently has a massive cash pile worth $196 billion USD.
The company is just coming off a record quarter for earnings. This is the first quarter in Apple history in which it earned $100 billion+ USD in a single three-month period.