The apples in the debt: Apple has completed the placement of bonds by $10 billion
03.02.2017 Erika J. Wells 0 Comments
Apple has completed the placement of bonds by several billion dollars. Thus, the company seeks to diversify its sources of funding.
The iPhone maker has joined the ranks of companies that have completed this week’s major of the bonds placement. Apple issued bonds by $10 billion, referring to the debt market for the first time since July last year.
Previously, Microsoft sold the bonds at $17 billion, and AT&T sold the securities by $10 billion.
In connection with the increase in the yield of US Treasury bonds that have occurred since the latest placement papers of Apple, the interest rate on its new 10-year notes is 3.35%, which is almost one percentage point above the 2.45% offered on 10-year bonds in the summer.
The proceeds from the sale will be used for General corporate needs, including stock repurchases and dividends.
First Apple came to the bond market in early 2013 to Finance the program at $100 billion to return capital to shareholders. Then the company issued bonds with floating interest rates with a maturity to 2016 and 2018. Apple has also issued debt securities with a fixed interest rate with a maturity until 2016, 2018, 2023 and 2043.