Apple Inc has gone to the US blue-chip bond market early this week, in what is seen as a move by a number of borrowers to raise cash ahead of important inflation readings which are due during the week.
The most valuable company in the US sold bonds in a five-part US$5.25 billion deal. It is believed according to insiders that Apple was originally intending to raise US$5 billion.
The longest portion, a 30-year bond, will yield 108 basis points over comparable Treasuries, less than the roughly 135 basis points initially discussed, according to Bloomberg sources.
Dealers surveyed by Bloomberg were expecting $US30 billion to $US35 billion of US high-grade bond sales this week as corporate debt markets show signs of stabilising. T-Mobile US Inc and Merck & Co were amongst the bond sellers.
Proceeds from the Apple bond sale will be used for general corporate purposes.
Also read: Major Banks in the Market
Apple sold US$5.5 billion in bonds to fund buybacks and dividends in August 2022.
Apple today announced financial results for its fiscal 2023 second quarter ended 1 April 2023. It posted quarterly revenue of US$94.8 billion, down 3 per cent year over year, and quarterly earnings per diluted share of US$1.52, unchanged year over year.
Facebook parent Meta Platforms raised US$8.5 billion in its second ever bond sale last week.
Image: ©razgulyaev/123RF.COM
