Apple Dives Back into Bond Market

Dow Jones Newswires

Apple Inc. is back in the bond market.

The tech giant is looking to complete a large bond deal Wednesday, though no size has been set yet.

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The company says it will use the proceeds to help pay for share buybacks and dividends, part of an expanded capital-return program for shareholders the company announced last month.

Apple is offering the bonds in up to seven parts, with maturities ranging from two to 30 years. Investors have said previously that they were expecting Apple to tap the market, given that the company has sold bonds around this time the past two years.

Apple's bond sale comes after a number of large bond deals from highly rated companies, as issuers take advantage of the continued low-interest rate environment. On Tuesday, AbbVie Inc. sold $16.7 billion, and last month, AT&T Inc. sold $17.5 billion. Earlier in the year, Actavis PLC placed a $21 billion deal.

Apple is coming off a strong quarter. The company reported a 33% increase in profit for the quarter ended March 28, with net profit totaling $13.6 billion, compared with $10.2 billion in the year-earlier period. Strong iPhone sales helped boost the company's performance.

Some outstanding Apple bonds traded slightly lower in price, and higher in yield, on Wednesday morning, as some investors sold in anticipation of the new deal. A 2018 bond traded to yield 1.286%, compared with 1.237% on Tuesday, according to data from MarketAxess.