- Apple (NASDAQ:AAPL) has filed to sell $5B worth of floating rate and fixed-rate notes. The floating-rate notes are due 2020, and the fixed-rate notes due 2020, 2022, 2025, and 2045. (prospectus)
- Pricing hasn't been set yet. Goldman and Deutsche are underwriting. Given Apple's huge cash balance, and its history with such offerings, buybacks are a likely use of the proceeds.
- Apple's cash/marketable securities balance totaled $178B at the end of FQ1 (much of it offshore), and its debt balance stood at $36.4B. The company spent $5B on buybacks during the quarter, and has spent $73B on them over the history of its $130B capital return program.
- AAPL +0.7% premarket.
- Update: Apple upsized the offering to $6.5B. Interest rates were predictably low, with the 2045 notes carrying just a 3.45% coupon.