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Apple posted better earnings than expected for the June quarter.
Spencer Platt/Getty Images)
Apple
sold $6.5 billion of notes on Friday, taking advantage of low interest rates to boost the cash position on its balance sheet.
The offering has four parts. Apple (ticker: AAPL) sold $2.3 billion of 7-year notes due 2028, with a 1.4% coupon; $1 billion of 1.7% 10-year notes due 2031; $1.8 billion of 2.7% 30-year notes due 2051; and $1.4 billion of 40-year notes due in 2061, with a coupon of 2.85%.
As of June 30, Apple had $113.8 billion in long-term debt outstanding, including current maturities, reflecting $14 billion raised in an offering in February. The company said in a Securities and Exchange Commission filing earlier this week that it plans to use proceeds “for general corporate purposes,” including share repurchases and payment of dividends, funding for working capital, capital spending, acquisitions, and repayment of debt.
Goldman Sachs,
BofA Securities and
Barclays
are leading the offering.
Apple this week posted better-than-expected June quarter earnings, driven in particular by strong growth in both iPhone demand and services. Apple has been pushing to reduce its net cash position, with the overall goal of becoming cash neutral. The company finished the quarter with $72 billion in net cash, after returning close to $29 billion to holders in the latest quarter in the form of dividends and stock buybacks.
Apple shares on Friday have added 0.3%, to $146.07.
Write to Eric J. Savitz at eric.savitz@barrons.com
