Apple is issuing new bonds thought to be worth $5bn (£3.3bn) to fund a host of “general corporate purchases,” including share repurchases, dividends, capital expenditures and acquisitions, and repayment of debt.
Despite a record quarterly earnings of $18bn, the tech giant is making the most of the record-low costs of corporate borrowing.
Floating and fixed rate notes will be due in 2020, and further fixed rate notes will be due in 2022, 2025 and 2045. A yield rate has not been disclosed in its preliminary filing with the SEC.
The company issued its first non-dollar debt offering in November last year, selling €2.8bn (£2.2bn) of euro bonds to take advantage of rock-bottom borrowing rates. It offered a 1.08 per cent rate on the eight-year note.
Apple stock hit an all-time high of $120 per share last week.