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

Ben Lovejoy Jun 4 2015 - 6:52 am PT

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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

• AAPL Company
• Apple News
• stock
• dividend
• repurchase

Apple boosts capital return program, increasing dividend and share repurchase

Jeremy Horwitz Apr 27 2015 - 1:45 pm PT

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Photo: huffpost.com

Expanding upon its previously announced programs to return cash to investors, Apple today announced that it will use a total of $200 billion of cash by the end of March 2017 to fund the repurchase of Apple stock and the payment of dividends. The enhanced capital return program authorizes the purchase of an additional $50 billion of Apple shares, now totaling $140 billion, settles vesting restricted stock units, and increases Apple’s stock dividend by 11% to $0.52 per share. Apple’s dividend will be payable May 14, 2015 to shareholders holding Apple stock as of May 11, 2015.

Apple notes that it has already returned over $112 billion to shareholders, including $80 billion through repurchases of Apple stock. The program will be funded in part using domestic and international debt markets.

“We believe Apple has a bright future ahead, and the unprecedented size of our capital return program reflects that strong confidence,” said Tim Cook, Apple’s CEO. “While most of our program will focus on buying back shares, we know that the dividend is very important to many of our investors, so we’re raising it for the third time in less than three years.”

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• AAPL Company
• Apple News
• stock
• aapl-company
• Bonds

Apple plans $5 billion bond offering to cover stock repurchases, dividends, capital needs (Updated)

Jeremy Horwitz Feb 2 2015 - 7:46 am PT

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Having filed a prospectus today with the SEC, Apple plans to offer around $5 billion in bonds, following a 2013 bond offering of $17 billion, and a 2014 offering of $12 billion. While Apple’s corporate coffers stand at over $178 billion after its most recent record-breaking quarter, even thriving companies sometimes use bond offerings to fund projects, lessening tax consequences in the process.

Deutsche Bank and Goldman Sachs put together the offering, which Apple says will be used towards

repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures and acquisitions and repayment of debt.

As noted by The Wall Street Journal, the bonds will mature in 5 to 30 years, with a 10-year bond offering a 0.95% greater return than government-issued Treasurys. Apple carries a Moody’s rating of Aa1, the service’s second-highest rating, suggesting that the investment is exceptionally low-risk.

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