Apple's latest bond sale more modest than earlier offerings, hits $7 billion

Following the initial notification of a new bond sale on Thursday, Apple has launched the offering and raised $7 billion in a six-part sale with due dates ranging to 2027.

Both Thursday's and Friday's filings indicate that the due dates will be spread over six periods with two floating rate notes due in 2020 and 2022, and four fixed rate due in 2020, 2022, 2024, and 2027. The amounts per offering are $500 million, $750 million, two worth $1 billion each, $1.75 billion, and $2 billion, respectively.

Joint managers continue to be Goldman Sachs & Co, J.P. Morgan, and Wells Fargo Securities. Amounts will be clarified in future updates to the document. Apple uses the sales to support further share buyback programs, and dividend offerings.

AppleInsider was the first to note the redacted offering on Thursday in a prospectus filed pursuant to federal regulations before the details were finalized.

During Apple's quarterly financial disclosures on Tuesday, Apple simultaneously announced plans to extend its capital return program by $50 billion and for another full year. Given the expansion, the stock buybacks should reach the $300 billion mark by March 2019.

The expansion noted a raised ceiling on stock buybacks, pushed from $175 billion in Q2 2016 to $210 billion for the current quarter. Quarterly dividends were increased to 10.5 percent, and a payout of $0.63 per share will be delivered on May 18 to people owning shares by the end of the trading day on May 15.

Apple SEC filing for May 2017 bond sale by Mike Wuerthele on Scribd

8 Comments

randominternetperson 3095 comments · 8 Years

About 7 years ago

(Not really related to the article, but oh well)

Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days? I find it very surprising that this happened this week, but I'm certainly glad it did. Usually the investor herd builds on negative momentum for at least a few weeks.

carnegie 1082 comments · 10 Years

randominternetperson said:

(Not really related to the article, but oh well)
Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days? I find it very surprising that this happened this week, but I'm certainly glad it did. Usually the investor herd builds on negative momentum for at least a few weeks.

I can't remember what's happened in after-earnings after-hours trading for each quarter. Some of that stuff blends together in my memory after so many quarters and reports and such.

But I can say that there have been times when the after-hours trading price dropped quite a bit right after earnings and then rebounded a lot shortly thereafter or the next day. When Apple's earnings are released I'm usually watching the after-hours trading pretty closely to see if there's (what I consider to be) a quick opportunity based on an initial (wrong in my assessment) reaction. After-hours trading can be volatile. And there have been times when the first move in the trading price has been contrary to what I'd have expected and when that move was dramatically reversed later in after-hours trading or the next day.

SpamSandwich 32917 comments · 19 Years

randominternetperson said:

(Not really related to the article, but oh well)
Can anyone remember a time when AAPL fell sharply after the quarterly earnings report (as happened Tuesday night) only to have it completely bounce back in just a few days? I find it very surprising that this happened this week, but I'm certainly glad it did. Usually the investor herd builds on negative momentum for at least a few weeks.

The jobs report came in with very strong numbers, which is positive news for Trump. Look at Tesla stock today, in addition to AAPL. Both just had big jumps.

ddawson100 532 comments · 16 Years

Apple's bond holdings are just astronomical. They keep innovating in surprising ways.

https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds

The jobs report came in with very strong numbers, which is positive news for Trump.

Trump on the jobs numbers: "They may have been phony in the past, but it's very real now."

Edit: add picture back. Link to imgur didn't seem to work.

ddawson100 said:

Apple's bond holdings are just astronomical. They keep innovating in surprising ways.

https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds

The jobs report came in with very strong numbers, which is positive news for Trump.

Trump on the jobs numbers: "They may have been phony in the past, but it's very real now."

Well, previous unemployed numbers left off many people who were thrown into the category of "long-term unemployed" or permanently unemployed. I do not know if that practice has changed.