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Apple preparing $7 billion U.S. bond sale to support stock buyback program

Apple continues to leverage bond sales and low interest rates to fund both its stock buyback program and green initiatives, with an upcoming third sale this year to hit US debt capital markets.




According to the Financial Times, the sale is three-times over subscribed, and will happen in five parts. The joint book running managers for this bond sale are likely again Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank Securities, and J.P. Morgan, the same managers as the last two U.S. sales.

The February US offer was a $12 billion effort, with a "Green bond" issue for $1.5 billion to finance clean energy projects. Bond sales in 2015 generated $8 billion for Apple.

A bond sale in Taiwan concluded on June 8, and generated $1.38 billion in 30-year bonds, 40 percent more than originally expected.

Apple intends on spending $58 billion in the span of the next two years on stock buyback programs. In April, the company claimed that the capital return program funded in part by the bond sales, has returned more than $163 billion to investors since its activation in August 2012. Share repurchases accounted for $117 billion of the $163 billion.