Apple plans to sell more debt, the company has disclosed in a filing with the SEC this morning. As spotted by Business Insider, Apple will sell about $5 billion in new debt and use it for “general corporate purposes”, such as stock buyback, dividend payments, funding for working capital, capital expenditures, acquisitions, and repayment of debt.
Apple will issue floating- and fixed-rate notes. While there is no pricing available yet, what is known is that the floating-rate notes are due 2020, while the fixed-rate notes are due 2020, 2022, 2025, and 2045. Goldman and Deutsche are underwriting.
As of the end of fiscal Q1 2015, Apple is sitting on a cash pile of $178 billion, the company revealed during the earnings call. Much of that money is offshore, and its debt balance is at $36.4 billion.
It is worth noting here that Apple spent $5 billion on stock buyback in the December quarter. That amount puts the total stock repurchase plan’s spending at $73 billion of the $130 billion capital return program.