Apple Preps Bond Sale for Stock Buyback Initiative

Monday April 29, 2013 11:51 am PDT by Juli Clover

stockbuyback Ahead of last week's earnings release, Apple announced that it would more than double its capital return program from $45 billion to $100 billion, with a 15 percent increase in dividend payments and a massive stock buyback initiative.

To facilitate the expanded capital return program, which will amount to a share repurchase of $60 billion, Apple must take on debt, a process that the company initiated today. According to Reuters, Apple has begun investor calls, led by both Deutsche Bank and Goldman Sachs, and it has filed the necessary 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.

Any bond offer from the makers of the iconic iPhone and iPad would be highly sought after by investors, and it is believed the company could raise funds at a cheaper rate than even Triple A rated Microsoft.

Apple has a long history with both Deutsche Bank and Goldman Sachs. According to Bloomberg, the former advised Apple on its takeover of Next Computer, while the latter has been advising Apple on a cash plan. It is unknown if one of the two banks will lead the upcoming bond offering.

Though Apple has a cash pile that exceeds $145 billion, only a portion of that is available in the United States, leaving the company unable to fully fund its stock buyback. Borrowing money will allow Apple to avoid the taxes that it would incur moving money from overseas.

Popular Stories

Here's When iOS 27 Rolls Out Today in Every Time Zone [Update: It's Out]

Sunday September 13, 2026 3:00 am PDT by Eric Slivka

Update 10:04 a.m.: iOS 27 is rolling out now, though it may take a bit for all users to see it, so keep checking! Apple is about to release iOS 27, which will finally deliver more advanced Siri AI capabilities as well as a variety of other refinements, improvements, and new features to iPhones. It's Apple's biggest software update of the year, and Apple announced at Wednesday's iPhone event...

• 151 comments

iOS 27 Available Now With These 8 New Features

Monday September 14, 2026 9:00 am PDT by Joe Rossignol

Update — 10 a.m. Pacific Time: Apple has released iOS 27. During its iPhone 18 Pro and iPhone Duo event last week, Apple announced that iOS 27 will be released widely on Monday, September 14. iOS 27 should be available around 10 a.m. Pacific Time / 1 p.m. Eastern Time today via the Settings app, under General → Software Update. Below, we have highlighted eight new features and...

• 111 comments

Apple Says iPhone 18 Pro Max Sold in U.S. Differs in One Way

Saturday September 12, 2026 3:27 pm PDT by Joe Rossignol

As noted by Nicolas Lellouche, who writes for the French tech website Numerama, Apple has updated its tech specs pages for the iPhone 18 Pro and iPhone 18 Pro Max to clarify which models are equipped with its new C2 cellular modem and where. Apple now says the iPhone 18 Pro has a C2 modem worldwide, while the iPhone 18 Pro Max uses the chip in every country except for the U.S. According...

• 138 comments

Top Rated Comments

jdechko

175 months ago

Sorry, but the amount of stupidity here is baffling.

1) Smart people borrow money all the time when it suits them financially Borrowing money at 2% and holding investments at 3% is better than cashing in bonds at 3% and having no debt (or borrowing at 2% and having to pay 15% in taxes). Peter Oppenheimer, CFO > Internet Armchair Accountants on MR

2) Apple is buying back stock slowly. They can't afford to completely go private, but you can bet that's where they are headed. As long as they are a public company, they are still dependent on some outside entity (stockholders). And given the current state of affairs, a bank loan is much less volatile than Apple's share price.

3) Tim Cook is the business genius to Steve's marketing/product genius. Tim Cook is the reason why Apple has $145bn in the bank. Cook is the reason why the Steve could announce the iPad at $499 instead of $999. Cook definitely isn't a product guy, no doubt. But he is a master at operations. (This is the reason why Steve Jobs recommended Cook as his successor).

Firing Tim Cook would be a huge disaster for Apple (see #3). It's what a vocal minority of the stockholders are calling for (see #2), which is why it won't happen.

Score: 6 Votes (Like | Disagree)

50548

175 months ago

As an Apple shareholder, I am intrigued and I'm not completely convinced by this.

The moment you start taking on debt is the moment you lose your independence.

What makes this move even more moronic is the basic fact that Apple, of all companies, is the ONLY one with zero debt and zero need to borrow money.

Of course, the usual "investors" looking for a cheap buck will praise this move as the main enabler of fat dividends and artificially-higher stock prices.

Remember when SJ used to tell us how Apple had no debts whatsoever? Where is he when we need him?

Tim Cook = Michael Spindler Redux.

Score: 6 Votes (Like | Disagree)

Chupa Chupa

175 months ago

As an Apple shareholder, I am intrigued and I'm not completely convinced by this.

Convinced of what? The buyback or the borrowing to pay for it?

At any rate this is a tip of the hat to mutual, hedge, and pension fund managers who want to see some $ if they are to keep positions in AAPL.

Score: 6 Votes (Like | Disagree)

camnchar

175 months ago

Apple should just create an overseas bank and loan the money to itself.

Score: 4 Votes (Like | Disagree)