The Tablet War in the 7" Space is set to Heat Up in 2013
Nokia Mocks the Apple-Samsung Smartphone War

Apple Sets Groundwork for their Debt Sale

PA - Title Bar - News Shot
The International Financing Review is reporting today that Apple is set to begin investor calls today led by Deutsche Bank and Goldman Sachs, a source familiar with the situation told IFR, and filed SEC paperwork for a debt offering.

The only major tech company without a penny of debt on its books, Apple stunned the markets last week by announcing it could sell debt for the first time to help fund a $100 billion capital return program for shareholders.


The decision to issue debt for the first time is seen by some in the market as a recognition that the realities of the marketplace have changed. One banker went as far to describe Apple's move as "complete capitulation on the growth story in my opinion." That's certainly negative stretch that will likely come back to bit this banker.


The report concludes that because Apple has no debt outstanding that they'll be able to sell bonds at tighter yield spreads than Microsoft. Given the funding needed and the size of investor demand, many believe Apple would issue debt across multiple maturities and currencies.


PA - Bar - News Break

About Comments: Patently Apple reserves the right to post, dismiss or edit comments.




I could not be happier with Apple's latest capital allocation decisions. Tax efficient major share buyback and debt issuance. Phenomenal.

The comments to this entry are closed.