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Apple Prices Bond Sale in Japan at ¥250 Billion

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Apple Red LogoApple has set a principal amount of ¥250 billion ($2.01 billion) for its bond sale in Japan per a final pricing term sheet published by the U.S. Securities and Exchange Commission on Thursday. The yen-denominated bonds have an interest rate of 0.350% and are set to mature on June 10, 2020. Interest is to be paid semi-annually on June 10 and December 10, commencing December 10, 2015.

The global notes will be available for purchase by both domestic and foreign investors, with net proceeds to be used for general corporate purposes, including stock buybacks, dividend payments, funding for working capital, capital expenditures, acquisitions and debt repayment. The issue is being handled by Goldman Sachs International and Mitsubishi UFJ Securities International.

Tags: Bonds, Japan, SEC

Top Rated Comments

Keane16 Avatar
143 months ago
If you know anything about corporate finance and taxation it makes perfect sense. Each time a news item is posted here about a foreign bond issue, a Swiss one, a German one, etc, similar uninformed folks post. I suggest going back and simply re-reading the posts explaining why it makes sense. It will be quite informative.

In short, the government sticks its nose so far up the Apple core, AAPL has to respond somehow in their own best interest, and the interest of shareholders, which is their primary remit.

Rocketman
Easy there cowboy.

In the system we've developed as a society - yes perfect sense.

That's why I said when you take a step back it's crazy. As Cuban Missiles said, we're talking abut a global company with $200b to its name. Yet it's selling bonds to raise funds.

So calm your boosters. There was nothing uninformed about my post.
Score: 6 Votes (Like | Disagree)
aaronvan Avatar
142 months ago
They can do whatever they want with it.

They could repatriate it and pay taxes. But they have the means to raise funds in another, cheaper, way. So they chose to do that.
Apple pays me dividends. That's a very good use of their money.
Score: 2 Votes (Like | Disagree)
Benjamin Frost Avatar
143 months ago
The name's Bond; Apple Bond.
Score: 2 Votes (Like | Disagree)
senseless Avatar
142 months ago
Keeping it simple, it's a smart busines move.

Apple has a lot of cash. But a big chunk of it is overseas. It can't use that money without getting hit by U.S. taxes when they 'bring it home'.

Apple has done a few bond sales over the last few years. Mostly they have used the money to buyback some of their own shares (reducing the supply and therefore boosting the share price), paying dividends among other things.

It's a good time to do the bond sales as rates are very low and of course Apple has insurance (the huge cash pile) so investors are keen to purchase (not to mention the general good health of the company).

That leads to my "crazy" comment. This global company has all this money, but rather than bring it home in the normal manner it's better (cheaper) for it to rack up some debt (in the form of bonds). What a funny old world, eh?
So what's the point of having a lot of money, if you can't do anything with it?
Score: 1 Votes (Like | Disagree)
keysofanxiety Avatar
143 months ago
Keeping it simple, it's a smart busines move.

Apple has a lot of cash. But a big chunk of it is overseas. It can't use that money without getting hit by U.S. taxes when they 'bring it home'.

Apple has done a few bond sales over the last few years. Mostly they have used the money to buyback some of their own shares (reducing the supply and therefore boosting the share price), paying dividends among other things.

It's a good time to do the bond sales as rates are very low and of course Apple has insurance (the huge cash pile) so investors are keen to purchase (not to mention the general good health of the company).

That leads to my "crazy" comment. This global company has all this money, but rather than bring it home in the normal manner it's better (cheaper) for it to rack up some debt (in the form of bonds). What a funny old world, eh?
Thank you for your courtesy Keane, I feel I understand this a lot better now.

Best wishes. :)
Score: 1 Votes (Like | Disagree)
Keane16 Avatar
143 months ago
I don't understand what anything you've just said means. :oops: Come to think of it, I don't really grasp what's actually going on about bonds and the like. Not to step in on a good Internet argument or anything, but would somebody be patient enough to explain this? Or even simplify to: is this good news or bad news? Who does it benefit? Is this a shrewd Apple move or ...?
Keeping it simple, it's a smart busines move.

Apple has a lot of cash. But a big chunk of it is overseas. It can't use that money without getting hit by U.S. taxes when they 'bring it home'.

Apple has done a few bond sales over the last few years. Mostly they have used the money to buyback some of their own shares (reducing the supply and therefore boosting the share price), paying dividends among other things.

It's a good time to do the bond sales as rates are very low and of course Apple has insurance (the huge cash pile) so investors are keen to purchase (not to mention the general good health of the company).

That leads to my "crazy" comment. This global company has all this money, but rather than bring it home in the normal manner it's better (cheaper) for it to rack up some debt (in the form of bonds). What a funny old world, eh?
Score: 1 Votes (Like | Disagree)

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