Deutsche Bank, Goldman Sachs and Apple are expected to host a call with investors today, arranging for a new blockbuster bond deal that will come at least partly in euros, according to a new report.
Citing a person familiar with the plans, The Wall Street Journal revealed the anticipated call on Monday, revealing that the bond issuing could come as soon as this week. If the rumor proves true, it would be the first time that Apple has issued debt in a currency other than the U.S. dollar.
Now would be an opportune time for Apple to issue a bond deal in euros, given record-low levels of borrowing costs in Europe. The money earned will allow Apple to finance its share buybacks and dividends.
Most of Apple's huge sum of cash is held overseas, and repatriating it to buy back shares or issue dividends would cost the company a considerable sum in U.S. taxes. As a result, Apple has opted instead to borrow, in addition to using its domestic cash, to fund its capital return program.
As of last quarter, Apple had $155.2 billion in cash and marketable securities. Apple has said multiple times that it has no plans to bring its cash back to the U.S. because of high tax rates.
Apple issued a $17 billion six-part bond offering in 2013, which at the time was the largest ever for a U.S. corporate offering. The company offered another $12 billion bond sale earlier this year.