The golden Apple

30 April 2013 By Richard Beales Follow @richardbeales1

The U.S. tech giant may borrow over $15 bln, the most in one shot by any non-bank. The bonds could carry record low yields. And Apple only needs the money because U.S. tax rules make repatriating cash costly. Eager investors should be alert to the perfect storm behind the deal.

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Apple on April 30 opened order books on a six-part all-dollar bond offering, which could turn out to be the largest non-bank debt sale in history. The U.S. iPhone and iPad maker is issuing bonds to help fund its plan to return $100 billion in capital to shareholders by the end of 2015.
Apple is planning to offer three-year and five-year fixed and floating-rate notes, as well as 10-year and 30-year fixed-rate notes via Goldman Sachs and Deutsche Bank.
Sources told IFR that investors, in what is known as a reverse inquiry, had asked for Apple to issue at least $5 billion to $6 billion in debt, but that the company in fact plans to issue $15 billion or more, which would be the largest bond sale ever by a non-financial institution.

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