Apple to borrow again with company's first-ever Canadian dollar bond

Apple's international borrowing continues to expand to new countries, with the company revealing in a U.S. Securities and Exchange Commission filing on Tuesday that it will offer its first debt offering in Canadian dollars.

The amount Apple is looking to raise has not yet been revealed, but the Canadian debt will be the first time Apple has borrowed specifically in the Great White North.

Apple plans to pay interest on the notes it issues semi-annually and in February and August of each year, beginning in February of 2018. The filing indicates that the notes will mature in August of 2024.

With a growing cash hoard and the vast majority of that money kept outside of the U.S., Apple has turned to international debt markets to generate funds. Apple's bonds are popular with investors given the company's continued success and $261.5 billion in cash.

In recent years, Apple has issued bonds around the world, including the U.K., Switzerland, Australia, Taiwan, and Japan.

Apple uses the money it raises from the sale of bonds to help finance share buybacks and quarterly dividends.

24 Comments

Avieshek 7 Years · 100 comments

About 7 years ago

The practice is happening in India too?

smack416 20 Years · 63 comments

Pardon my ignorance, but is there a way for the public to purchase these bonds?

anantksundaram 18 Years · 20391 comments

smack416 said:

Pardon my ignorance, but is there a way for the public to purchase these bonds?

You can buy/sell them on online brokerages such as Fidelity or Schwab. I am sure others let you do it too.

For example, you can choose from 37 different Apple bonds that currently trade on Fidelity.

MacPro 18 Years · 19845 comments

anantksundaram said:

smack416 said:

Pardon my ignorance, but is there a way for the public to purchase these bonds?

You can buy/sell them on online brokerages such as Fidelity or Schwab. I am sure others let you do it too.

For example, you can choose from 37 different Apple bonds that currently trade on Fidelity.

Pardon my ignorance too, but can you explain the point of buying Apple bonds over shares? I assume it's risk aversion?

seanismorris 8 Years · 1624 comments

I'd rather see a debt free company, than a larger cash hoard + increased debt...

If Apple doesn't have plans to make huge acquisitions I don't get it. Historically Apple makes small acquisitions.

I assume this practice is a result of a broken tax policy that keeps oversees earning oversees. Trump has said he's going to fix this... but Trump says at lot of things. This has gone as far back as President Clinton, and is a popular election topic, but interest (in actually doing something) wanes once they get in office.

I would like to know Apples plans, but the logic (as far as I can tell) is Bonds are a cheap way to grow the cash hoard, and the cash hoard does collect interest. Plus bringing the cash oversees home is to expensive...

I do wonder if this is a long term ploy to go Private. At some point Apple's stock is going to decline in value, that cash could be used to buy the outstanding shares.

Apple could benefit from being a Private company. They currently face significant disruption with product launches do to leaks, and analysts (often false) speculation.

There is not much point for Apple Analysts if a company doesn't have stock... also, there could be reduced regulation burden.

Apple could for example move their corporate headquarters to lessen the tax burden. Congress currently gets pissed about things like reverse-mergers, but I'm not sure they can actually do anything if a US Private company moves oversees.