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-   -   Apple bond sale to become six-part offering, filing reveals [u] (http://forums.macnn.com/112/mac-news/500209/apple-bond-sale-become-six-part/)

 
NewsPoster Apr 30, 2013 12:14 PM
Apple bond sale to become six-part offering, filing reveals [u]
<strong>(Updated with order book rumors, value of bonds)</strong> Apple's planned <a href="http://macnn.com/rd/284610==http://www.macnn.com/news/112759" rel='nofollow'>bond sale</a> involves a six-part offering, according to a filing discovered by <em>Bloomberg</em>. Some floating-rate notes are set to mature in 2016 and 2018, while fixed-rate securities are due in 2016, 2018, 2023, and 2043. The <a href="http://macnn.com/rd/284611==http://www.bloomberg.com/news/2013-04-30/apple-plans-six-part-bond-sale-in-first-offering-since-1996-1-.html" rel='nofollow'>filing</a> confirms Goldman Sachs and Deutsche Bank as the institutions managing Apple's sale.<br />
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The amount of debt Apple intends to sell is still unclear, but it's estimated that it could be anywhere between $15 billion and $20 billion. The company needs the money to finance a plan to return $100 billion to shareholders by 2015, even though it has $145 billion in total cash reserves. The problem is that only $45 billion of that is situated in the US, and Apple has refused to repatriate the foreign cash unless it can get a "holiday" on the 35 percent tax it would normally owe. Apple and other corporations have attempted to pressure politicians into enacting a tax holiday.<br />
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<em>Update:</em> A <em>Reuters</em> source says Apple has already attracted an order book in excess of $40 billion. The person also suggests that the sale should get pricing later today.<br />
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<em>Update 2:</em> The <em>Wall Street Journal</em> says that Apple's bonds will be <a href="http://macnn.com/rd/284636==http://online.wsj.com/article/SB10001424127887324482504578454691936382274.html?r u=yahoo&mod=yahoo_hs" rel='nofollow'>worth</a> $17 billion. The figure represents the largest-ever dollar amount for an American corporate offering.
 
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