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.

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17 Comments

crowley

said about 7 years ago

If they're three times oversubscribed, maybe they're offering too high a yield?

Interesting that S&P didn't give a AAA rating. Junk housing bonds get the highest rating, but one of the richest and most profitable companies in the world offer a low rate bond that they can cover today with cash reserves, and that's seen as riskier. To hell with the rating agencies.

gmgravytrain

said about 7 years ago

Apple is spending so much money on buybacks it's unreal. I guess it's a good thing but I think of how they could have spent more money on buying some other businesses to increase revenue. Wall Street positively loves Amazon for its business expansion. They keep buying up other businesses and the company keeps growing and growing. If Bezos keeps this up, they'll definitely pass Apple in market cap in a few more years. Amazon stock just keeps soaring without limits while Apple struggles and can't seem to shake the doom and gloom of being a dying company.

Amazon has a P/E of over 300 and Apple can't even manage a P/E of 15 due to lack of investor confidence. It's just crazy. Amazon investors love Bezos and Apple investors hate Tim Cook. Amazon is always being praised while Apple is constantly criticized as being poorly run. Amazon is run perfectly for investors while it seems Apple doesn't have a clue what investors want. Even the buybacks aren't good enough for Apple investors. I really don't understand Apple's at all. They seem to keep doing what no one wants them to do.

therunningvm

said about 7 years ago

gmgravytrain said:

Apple is spending so much money on buybacks it's unreal. I guess it's a good thing but I think of how they could have spent more money on buying some other businesses to increase revenue. Wall Street positively loves Amazon for its business expansion. They keep buying up other businesses and the company keeps growing and growing. If Bezos keeps this up, they'll definitely pass Apple in market cap in a few more years. Amazon stock just keeps soaring without limits while Apple struggles and can't seem to shake the doom and gloom of being a dying company.

Amazon has a P/E of over 300 and Apple can't even manage a P/E of 15 due to lack of investor confidence. It's just crazy. Amazon investors love Bezos and Apple investors hate Tim Cook. Amazon is always being praised while Apple is constantly criticized as being poorly run. Amazon is run perfectly for investors while it seems Apple doesn't have a clue what investors want. Even the buybacks aren't good enough for Apple investors. I really don't understand Apple's at all. They seem to keep doing what no one wants them to do.

Nope, its the other way around. Apple investors are retarded. Well, wall street as a hole is retarded. Those guys only care about how many iPhones apple has sold. You think apple buying a bunch of companies is going to change anything? Think again.
Apple has always been "doomed" and their eyes. No matter what apple does, they’re always "doomed".
And those Wall Street morons keep believing those so-called, analysts. Apple doesn't do what investors want because it isn't good for them in the long term. I think those people are bitter that apple didn't do what they wanted, and still turned out successful.

drewys808

said about 7 years ago

gmgravytrain said:

I really don't understand Apple's at all. They seem to keep doing what no one wants them to do.

YES... you "don't understand Apple at all".
Leave it at that.

Hey, aren't you the same guy posting on Jul 20 parading MSFT victory banners while pissing on AAPL's cheerios?
I believe you used the phrase "Apple is doomed".

You are a piece of work.

toranaga

said about 7 years ago

drewys808 said:

gmgravytrain said:

I really don't understand Apple's at all. They seem to keep doing what no one wants them to do.

YES... you "don't understand Apple at all".
Leave it at that.

Hey, aren't you the same guy posting on Jul 20 parading MSFT victory banners while pissing on AAPL's cheerios?
I believe you used the phrase "Apple is doomed".

You are a piece of work.

Spare us the negativity. The poster made some valid points.