Apple to tap debt markets yet again

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 Apple’s iPhone X wows some with newest features

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Apple’s iPhone X wows some with newest features

Polygon.com co-founder Russ Frushtick, one of the newest iPhone X owners, explains what he likes and doesn’t like about the newest Apple product.

Like clockwork, every time Apple(NASDAQ:AAPL) domestic cash position dwindles to near $15 billion, it promptly conducts a bond offering in order to fill its coffers to continue its aggressive capital return program. Just days after reporting a blockbuster fiscal fourth-quarter earnings release

Apple filed a preliminary prospectus

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That's a lot of paper

The notes will come due in November 2019, November 2020, January 2023, January 2025, November 2027, and November 2047. Bloomberg

Maturity

Coupon

Last Sale

Yield

May 2043

3.85%

101.8

3.74%

May 2044

4.45%

111.1

3.78%

February 2045

3.45%

97.3

3.6%

May 2045

4.375%

109.9

3.79%

February 2046

4.65%

113.8

3.84%

August 2046

3.85%

101.5

3.76%

February 2047

4.25%

108.2

3.77%

September 2047

3.75%

100.3

3.73%


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    Apple raised approximately $7 billion worth of debt last quarter, which included $2 billion$5 billion

    After repurchasing $7.5 billion worth of stock last quarter, which included $4.5 billion in open market purchases and a $3 billion accelerated share repurchase (ASR) program, Apple has bought back $166 billion out of its $210 billion repurchase authorization. That authorization was boosted from $175 billion to $210 billion in May

    Debt and taxes

    Over the past year, the chances of some type of tax reform that includes more favorable repatriation rates has increased significantly. Republicans unveiled a tax bill last week

    Apple has lobbied for tax reform for years, with CEO Tim Cook arguing that the current 35% repatriation rate is far too high. Cook has said that Apple would gladly bring some of that cash home for domestic investment (and capital returns) if only the repatriation rate was "reasonable." The chief executive has previously said a rate in the "single digits" would be reasonable, but more recently acknowledged that 15% to 20% may be more likely.

    But Apple's capital return program can't wait on congressional action. It needs that domestic cash now.

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