Apple Taps Bond Markets Again for Cheap Financing
Posted on 07/29/2021
Apple Inc. (AAPL) announced a four-part debt issuance of US$ 6.5 billion in bonds due 2028, 2031, 2051, and 2061. Will Apple use the funds for stock buybacks? The longest portion of the offering, a 40-year security, may yield 1.15 percentage points above U.S. Treasuries.
Earlier in 2021, Apple sold US$ 14 billion of bonds to take advantage of cheap borrowing costs. Apple then issued debt in six tranches. The longest portion of the offering, a 40-year security, was set to yield 95 basis points above U.S. Treasuries.