Bonds Stories March 24

AAPL: 140.64

-0.28

Apple may be planning to increase its dividend by 15% and increase the funds allocated to its stock buyback program from $30B to $35B. This claim was made in an investment note by RBC analyst Amit Daryanani, seen by Business Insider … 

expand full story

Bonds Stories January 25

AAPL: 121.88

1.91

Following reports late last week that Apple is suing its iPhone modem supplier Qualcomm for $1 billion in the US, today Beijing’s Intellectual Property Court said Apple has also filed a similar suit in China seeking 1 billion yuan or over $140 million in damages (via Reuters).

In response to the new lawsuit, Qualcomm today issued its own press release and noted that Apple is claiming the company is in violation of China’s Anti-Monopoly Law. The press release also said that Apple is requesting “determination of the terms of a patent license” regarding the two companies’ cellular standard essentials patents, in response to which Qualcomm’s lawyers claimed Apple was offered deals consistent with the rest of the industry:

expand full story

The best 4K & 5K displays for Mac

Bonds Stories June 1, 2016

AAPL: 98.46

-1.40

Apple planning $1B bond launch in Foxconn’s home market of Taiwan – Reuters [U]

Update: The WSJ echoes the report, adding that $1B will just be the starting point, with possible increases based on demand, and stating that it will be mirrored by a similar bond issue in Australia. It says that in all Apple is aiming to raise $3-4B in the Asia Pacific region.

If an unconfirmed Reuters report is correct, Apple could be tapping Taiwan for more than just components and assembly – it is also looking to raise capital from the island.

Apple Inc plans to issue bonds in Taiwan for the first time with the aim of raising $1 billion, sources familiar with the matter said, joining a queue of big global names that have sold billions of dollars on the island’s busy debt market.

Bonds Stories February 16, 2016

AAPL: 96.64

2.65

Update: The WSJ reports that Apple’s target is to raise $12B, “on the higher side of investor expectations.”

An SEC filing reported by ZeroHedge reveals that Apple has announced plans for a series of new bond issues to raise money for further stock buybacks and dividend payments in what could be a 10-part deal.

General corporate purposes, including repurchases of Apple’s common stock and payment of dividends under the company’s program to return capital to shareholders, funding for working capital, capital expenditures, acquisitions and repayment of debt.

MarketWatch adds that the notes will offer floating-rates maturing in 2018 and 2019, and fixed-rates maturing at a range of dates from 2018 all the way through to 2046. Apple has not yet revealed either the rates to be offered or the total sum it plans to raise, but previous issuances suggest we can expect the amount Apple is borrowing to be substantial …

expand full story

Bonds Stories August 19, 2015

AAPL: 115.01

-1.49

Apple today has launched a “benchmark” sized Australian dollar corporate bond issue, its first in Australian currency. Investors in Australia were informed of the two-part bond sales just recently and told that Apple will offer four-year and seven-year bonds in the country.

expand full story

Bonds Stories June 4, 2015

Apple’s Japanese bond sale will raise more than expected, at $2B

Apple’s first ever Japanese bond sale will raise more than had been previously estimated. An SEC filing reveals that the sale will raise ¥250B ($2B), more than the ¥200 billion ($1.6B) which had been reported earlier.

Apple is selling the bonds in Japanese yen due to the extremely low interest rates in the country, with Apple offering a rate of just 0.35%, paid twice a year in June and December. Goldman Sachs, one of the two underwriters of the bond issue, said that the market would welcome the offering.

“It’s Apple’s first time issuing in yen. Their ratings, credit fundamentals and familiarity within the Japanese market are very high,” said a Goldman Sachs banker. “The outcome proves how much the market welcomed seeing this issuer come up.”

Although Apple has huge cash reserves, the majority of this is held overseas and cannot be repatriated back to the U.S. without large tax liabilities. It is cheaper for the company to borrow money to fund its stock buyback program and to fund dividend payments. Apple announced in April that it will spend $200B by the end of March 2017 on a mix of share repurchases and dividend payments.

Photo: randomwire.com

Powered by WordPress.com VIP