Apple planning to sell up to $6.5bn of bonds in another large sale

 

US technology company has used proceeds of previous sales to pay dividends to investors and increase its share buybacks.

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Apple is planning another large bond sale at a time when investors are paying near record premiums for high-quality bonds.

The US technology company will sell a combination of bonds with maturities ranging from five years to 30 years, according to a filing with US regulators.

The firm was originally trying to sell $5bn (£3.3bn) in bonds, according to traders, but investor demand has been strong and Apple’s offering might go as high as $6.5bn.

The sale is not one of the largest bond offerings from Apple. The company sold $17bn of bonds in 2013, which at the time was the largest bond sale ever by a US company. A year later, Apple sold another $12bn in bonds.

The company has used the proceeds previously to pay dividends to investors and to increase its share buybacks.

Apple already has plenty of cash. It reported $178bn in cash and marketable securities on hand at the end of December.

But most of that is parked overseas and, like several other large tech companies, Apple has been reluctant to incur taxes that would apply if it used that money in the US.

As of 27 December, Apple said $157.8bn of its cash and marketable securities were held by foreign subsidiaries and would be subject to the higher corporate tax rates applicable in the US if brought home.

With so much money on its balance sheet, Apple is considered an ultra-safe investment and has typically paid investors extremely low interest rates on its debt.