Apple Issues $7 Billion In Corporate Bonds

By Wallace Witkowski Markets MarketWatch Pulse

Apple Inc. said it issued $7 billion in corporate bonds, according to a Securities and Exchange Commission filing late Thursday. The tech giant said it issued $500 million in floating-rate bonds due in 2020, $750 million in floating-rate bonds due in 2022, $1 billion in 1.8% bonds due in 2020, $1 billion in 2.3% bonds due in 2022, $1.75 billion in 2.85% bonds due in 2024, and $2 billion in 3.2% bonds due in 2027. Apple has been using debt to pay shareholders while holding most of its $256 billion in cash overseas to avoid repatriation taxes. The company increased its shareholder-return program last week to $300 billion in concert with a quarterly earnings report that showed Apple added slightly more debt than cash in the quarter. Since Apple launched its shareholder-return program in 2012, its long-term debt has risen from zero to nearly $85 billion as of the end of last quarter. Apple stock, which hit record highs earlier this week that made it the first company with an $800 billion market cap, fell 0.1% at $153.84 after hours.

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