Apple is looking to raise $2.5 billion Canadian dollars, worth $1.96 billion at current exchange rates, in its first Canadian debt offering, according to documents filed with the U.S. Securities and Exchange Commission on Tuesday.
The SEC filing, which arrived just hours after a separate document announced the bond, provides details on Apple's first Canadian issuance.
According to the filing, Apple on Tuesday issued CA$2.5 billion in 2.513 percent notes maturing in August of 2024. The bond is underwritten by HSBC Securities (Canada) Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Goldman Sachs & Co. LLC with co-managers CIBC World Markets Inc., Merrill Lynch Canada Inc. and TD Securities Inc.
As noted earlier today, Apple intends to pay out interest on the notes in equal, semi-annual installments in February and August starting in 2018. The first interest payment will be a long first coupon payable on Feb. 19, 2018 in the amount of CA$31,584,623.29, the filing reads.
Apple has turned to debt markets instead of repatriating its gigantic offshore cash hoard, which stood at $261.5 billion at the end of the third fiscal quarter of 2017. The company uses bonds and other financial instruments to fund corporate initiatives and its capital return program.
Most recently, the company in May issued a $1 billion U.S. bond set to mature in 2027.