Apple has gone to investors again to issue multi-billion dollar bonds. This time the bonds have a total value of $ 5.5 billion. The debt sale was successfully carried out last week and allowed the high-volume group to take excellent interest rates.
Interest rates a little worse than Google
A paper that has been running for 40 years is only 118 Basis points on US Bunds – significantly less than the 135 basis points previously contemplated, according to an expert familiar with the negotiations to the financial news agency Bloomberg betrayed. Apple is doing significantly cheaper than the e-commerce giant Amazon, which recently achieved 130 basis points over US Bunds. Only Google managed an even better deal with 108 basis points.
Second bond since May
The market is very open to debts from large technology companies that have weathered the Corona crisis well so far. Apple uses the bonds primarily to buy back shares and pay dividends – the group is allowed to deduct the interest. The money can also be used for “basic business purposes” such as buying up other companies or day-to-day business. JPMorgan, Barclays, and Goldman Sachs were Apple’s bankers. It wasn’t until May that Apple had Issued $ 8.5 billion in bonds.
Record numbers in June
Apple had again reported record numbers in the June quarter – almost $ 60 billion in sales with a profit of 11.25 billion. Since then, Apple shares have stormed towards a market capitalization of $ 2 trillion – on Friday they had reached 1.97 trillion, the price was almost unchanged. Apple had also announced a stock split – existing shareholders receive four new shares for each old share. The group wants to make the acquisition of individual shares cheaper.