Apple to Fund Stock Buybacks and Dividends Through Another $5B Bond Sale - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple to Fund Stock Buybacks and Dividends Through Another $5B Bond Sale

by

Apple BondsAs Apple prepares to launch a new line of iPhones next week, the company is selling another round of bonds to further fund share buybacks and dividends, reports Bloomberg. Apple plans to offer $5 billion of debt in four parts to raise cash for its current capital return program.

The iPhone maker is offering $5 billion of debt in four parts, after dropping a two-year floating rate component, according to a person with knowledge of the matter. The longest portion of the sale, a 30-year security, may yield 1.1 percentage points above Treasuries, down from initial talk of around 1.25 percentage points, said the person, who asked not to be identified because the deal is private.

In August, Apple CFO Luca Maestri said Apple had completed $222.9 billion of its $300 billion capital return program, which is set to last through 2019. That figure includes $158.5 billion in share repurchases.

At the beginning of July Apple held over $261.5 billion in cash and marketable securities, but approximately 94 percent of that money is held overseas. It would cost Apple upwards of 35 percent in taxes to repatriate its overseas cash, so Apple uses debt markets to raise money more cheaply.

Apple's upcoming bond sale follows $7 billion in debt raised in a six-part bond sale in May of 2017.

Tag: Bonds

Top Rated Comments

jimthing Avatar
116 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
That may be a short term issue for a growing company during Jobs' period. But established ones holding large capital reserves don't have this issue, as clearly borrowing is cheaper than the tax bill.

It'd be silly to bring money into the US and pay 35%+ on it, when you can lend at a fraction of that rate.
Score: 7 Votes (Like | Disagree)
john123 Avatar
116 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
The criticisms of debt financing in the literature don't really apply in this case. That's why net debt, which takes into account cash and cash equivalents, is a better measure.
Score: 3 Votes (Like | Disagree)
luvbug Avatar
116 months ago
This is not a criticism, well ... perhaps just a bit :) Steve Jobs was all about "no debt, don't listen to irate investors", while Tim has embraced debt issues to appease investors. Personally, I liked Steve's approach much better, since it aligns with my own perspectives.
Score: 3 Votes (Like | Disagree)
RogerWilco Avatar
116 months ago
Nothing says Sillycon Valley ethos like a debt-funded share repurchase plan. Modern, sanitary, and totally bereft of any benefit to the mass of humanity living outside the bubble.
Score: 2 Votes (Like | Disagree)

Popular Stories

Apple Event Logo

Apple Working on All-New Operating System

Wednesday July 29, 2026 11:39 am PDT by
Apple is developing an all-new operating system that is essentially a mix of tvOS, watchOS, and iOS, according to Bloomberg's Mark Gurman. In a report this week, he said the operating system will feature a grid of icons, widgets, and apps, along with customizable clock faces. The new software platform is intended for Apple's long-rumored smart home hub. With built-in facial recognition,...
imac video apple feature

Apple Made Its Second-Biggest Acquisition Ever This Year

Wednesday July 29, 2026 12:03 pm PDT by
Apple this year acquired Israeli startup Q.ai for close to $2 billion, according to the Financial Times. That would make this Apple's second-biggest acquisition ever, after it paid $3 billion for the popular headphone maker Beats in 2014. This is also the largest known Apple acquisition since the company purchased Intel's smartphone modem business and patents for $1 billion in 2019. Q.ai...
Dynamic Island iPhone 18 Pro Feature

iPhone 18 Pro: Twelve Changes Coming to Apple's Next Flagship

Thursday July 30, 2026 3:43 am PDT by
We're less than two months out from the launch of Apple's premium next-generation smartphone lineup, and while we're not expecting a dramatic change in terms of functionality, there are still several enhancements rumored to be coming to the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth noting is that Apple is reportedly planning a major change to its iPhone release cycle this year,...

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors