iPhone News Desk
Apple Borrows Billions for Next to Nothing
Apple has $145 billion in cash but $102 billion of it is overseas and effectively out of reach
By: Maureen O'Gara
May. 2, 2013 09:15 AM
Apple has started borrowing money to underwrite the three-year $60 billion share buy-back program it promised stockholders last week.
The company is also going to pay out $55 billion in dividends through 2015.
It's issued floating-rate notes maturing in 2016 and 2018 and fixed-rate securities due in 2016, 2018, 2023 and 2043, it said in a regulatory filing, starting with a bond offering worth $17 billion on Tuesday, reportedly the largest non-bank bond offering ever.
It was swamped with orders reportedly worth $50 billion.
Apple will pay around 0.5% on three-year notes, 1.07% on five-year notes, 2.42% on 10-year notes and 3.88% on 30-year bonds. Next time the yields could be lower.
Apple has $145 billion in cash but $102 billion of it is overseas and effectively out of reach because the company doesn't want to pay the taxes to repatriate it.
Apple has no debt but still couldn't get the Triple A rating from S&P and Moody's that Microsoft has reportedly because of the uncertainties of the consumer market and doubts about its continued innovation.
The debt move is widely interpreted as meaning Apple's is no longer a growth stock.
Its stock was up almost 3% Tuesday to close at $442.78.
Reader Feedback: Page 1 of 1
Latest AJAXWorld RIA Stories
Subscribe to the World's Most Powerful Newsletters
Subscribe to Our Rss Feeds & Get Your SYS-CON News Live!
SYS-CON Featured Whitepapers
Most Read This Week