Seeking Alpha

Apple's debt offering only worth $12B

  • Apple's (AAPL - unchanged) offering size is below the $17B it raised a year ago, and had been reported to be looking to raise this year. Investors have placed over $40B worth of orders.
  • As expected, interest rates are low: 10-year bonds are offered to yield only 77bps more than comparable Treasurys, and 30-year bonds just 100 bps more.
  • The 7-part offering, which will help pay for additional buybacks, will increase Apple's total debt load to $29B. The company's cash/investment balance is at $150B, of which $18B is in the U.S.
  • Earlier: Apple files for 7-part debt offering
Comments (5)
  • vbbv
    , contributor
    Comments (66) | Send Message
     
    Better buy up the shares fast before it gets in the late 600s!
    29 Apr, 02:20 PM Reply Like
  • sara21
    , contributor
    Comments (4) | Send Message
     
    I believe management has some money left from previous authorization.
    Let us hope management was savy to buy back shares at lower prices.
    29 Apr, 03:35 PM Reply Like
  • drmwsunner
    , contributor
    Comments (120) | Send Message
     
    Buy the stock and if you have extra cash, buy the bonds.
    29 Apr, 02:58 PM Reply Like
  • littup
    , contributor
    Comments (346) | Send Message
     
    There you go, apple is pulling as many levers as possible.

     

    DEAD CHEAP financing to buy a stock with a current earnings yield of more than 10%...
    I mean, thats magic. Im betting my existence on apple being worth more than $1000.
    29 Apr, 03:45 PM Reply Like
  • ultraz2@aol.com
    , contributor
    Comments (323) | Send Message
     
    Yeha, Apple at $1,650 is more than $1,000. So you must be tuned in. The analyst are having their managers dump lots of other stocks to buy up Apple. Shortly after post split, watch Apple blow thru White's $777 a share number ($111 post split ).White is going to have to set the bar for Apple stock much higher than $111 post split and very soon.
    29 Apr, 06:36 PM Reply Like
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