Report: Apple planning multi-billion dollar bond sale for shareholder program

Based on a new report, the iPhone maker is about to set a U.S. corporate financial record in the billions.
Written by Rachel King, Contributor

Apple's capital return investment program continues to move front and center into the spotlight with a new financial deal that could land in the record books.

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The Cupertino, Calif.-based company is said to be planning to finance its $100 billion promised return to investors by selling $17 billion of bonds, according to Bloomberg.

If it goes through, it is expected to be the largest U.S. corporate offering in history.

Here is how it would work out, according to Tuesday's report:

Apple is issuing $3 billion of floating-rate notes and $14 billion of fixed-rate securities in six parts with maturities from three to 30 years, according to a person familiar with the offering. Proceeds may help the company avoid repatriation taxes on its $102.3 billion of funds held overseas as Chief Executive Officer Tim Cook returns an additional $55 billion to shareholders through 2015 to compensate for a stock that’s been hammered by signs of slowing growth.

To recall, in conjunction with the second quarter earnings statement last week, Apple announced it would be doubling its stock buyback program for investors.

That equates to a $55 billion increase from was previously announced, translating to an average rate of $30 billion per year between August 2012 through December 2015.

Cook had added in prepared remarks that Apple is "very fortunate to be in a position to more than double the size of the capital return program we announced last year."

Apple reportedly started taking steps on that path to its now $100 billion capital return program, including filing paperwork with the U.S. Securities and Exchange Commission as well as initiating talks led by Deutsche Bank and Goldman Sachs.

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