Advertisement

HindustanTimes Sun,13 Jul 2014

Apple paves way for its first debt sale ever

Reuters  London, April 30, 2013
First Published: 21:09 IST(30/4/2013) | Last Updated: 21:53 IST(30/4/2013)

Apple took initial steps Monday for what would be its first debt sale ever, as the US computer giant lays the groundwork for what would be one of the most anticipated bond sales of the year.

Advertisement

The company was to begin investor calls on Monday led by Deutsche Bank and Goldman Sachs, a source familiar with the situation told IFR, and filed SEC paperwork for a debt offering.

The only major tech company without a penny of debt on its books, Apple stunned the markets last week by announcing it could sell debt for the first time to help fund a $100 billion capital return program for shareholders.

http://www.hindustantimes.com/Images/Popup/2013/4/01-05-13-biz-09.jpg

Any bond offer from the makers of the iconic iPhone and iPad would be highly sought after by investors, and it is believed the company could raise funds at a cheaper rate than even Triple A rated Microsoft.

Apple was not immediately available for comment. As it unveiled its first quarterly profit decline in more than a decade last week, Apple said it plans to buy back some $60 billion of shares over the next three years.

According to analyst estimates, Apple has $145 billion of cash — but only $45 billion on hand in the US, and thus not enough to fully fund the share buy-back program.


Advertisement
more from Business

Doubling of tax on debt mutual funds to hit retirees

On Thursday, finance minister Arun Jaitley gave investors and the mutual fund industry a jolt by increasing the long-term capital gains tax on debt mutual funds to 20% from 10%. The definition of long-term has also been changed to 36 months for non-equity MFs from 12 months.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved