Apple this week issued a $3.5 billion, U.S. dollar-denominated bond to pay for its capital return program, outstanding debt, acquisitions and other operational expenses, according to a Securities and Exchange Commission filing.
The latest debt issuance is an add-on to Apple's $12 billion bond sold in February, which consists of three notes offerings maturing in 2021, 2026 and 2046.
Breaking the offering down by yield, Apple issued $750 million of its 2.25 percent notes maturing in 2021, $1.25 billion in 3.25 percent notes due in 2026 and $1.5 billion of its 4.65 percent notes due in 2046.
As a reopening of last month's notes, the company is earmarking proceeds for common stock repurchases and dividends payouts, funding for working capital, capital expenditures, acquisitions and repayment of debt. Apple estimates net proceeds of $3.64 billion after deducting expenses.
Underwriting Apple's bond are Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank Securities and J.P. Morgan. Co-managers include Barclays, Standard Chartered Bank, Wells Fargo Securities, CastleOak Securities, L.P., Drexel Hamilton, Loop Capital Markets and Ramirez & Co., Inc.
Apple has turned to debt markets instead of repatriating its gigantic offshore cash hoard to help finance its $200 billion capital return program, which stood at $153 billion paid at the end of the 2015 calendar year. At the end of December the company's foreign subsidiaries held over $200 billion in cash, cash equivalents and marketable securities which, if brought back into the U.S., would be subject to high tax rates.
Prior to February's bond Apple issued a euro-denominated offering worth $2.25 billion in September. The company has also sold bonds denominated in Japanese yen, Swiss francs, British pounds and Australian dollars.