Apple plans investor call ahead of potential bond sale

Apple is planning an investor call ahead of a potential bond sale -- which may be the first sold in euros.

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Credit: Apple

Apple is planning an investor call ahead of a potential bond sale, the third in the company's history.

The iPad and iPhone maker is working with Deutsche Bank and Goldman Sachs in order to organize the call, according to the Wall Street Journal. The publication, citing a person familiar with the matter, says that Apple may be considering selling bonds in euros — a break from other sales which have only taken place in US dollars.

The potential bond sale would be the third in company history. The Cupertino, Calif.-based company's first bond sale took place last year, and managed to raise a record-breaking $17 billion . At the time, Apple held a clean debt sheet and said the firm had cash reserves of over $144 billion.

In April, Apple held another bond sale, and this resulted in a $12 billion deal. According to data compiled by Bloomberg, the sale included $2.5 billion of 3.45 percent, 10-year notes.

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Both bond sales were heavily oversubscribed.

Apple is one of the most popular technology companies in the world, but by taking on debt, the firm is rewarding shareholders and is keeping US taxes low. In an April earnings call, the company said the majority of its cash and securities are held offshore. If reserves kept offshore are repatriated, heavy US taxation would follow. Therefore, it is cheaper for the firm to raise funds through bond sales, especially as borrowing rates are low.

Investors benefit through Apple's shareholder rewards program. The capital return program involves Apple buying back billions in shares, which then raises shareholder dividends — and keeps offshore funds out of the process.

Speaking to the WSJ, analysts from CreditSights in April said the tech giant may issue up to $5 billion in bonds this year, outside of the dollar.

Apple has secured an AA+ credit rating by Standard & Poor's, and a rating of Aa1 by Moody's.

Read on: Apple

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