Apple wants to get out of the debt market and sell the bonds at $17 billion . The company decided to take the opportunity to borrow at low rates. Accommodation debt is already being called the second largest in history.
Bond issue is needed , or rather desirable to provide funding for share buyback program . Apple wants to increase the buyback program from $60 billion to $90 billion , and fully cover these costs through the cache would be unwise. Currently the corporation has accumulated $150 billion of available funds , but $130 billion or 88% of them are held abroad, and if suddenly return to their homeland , U.S. treasury enriched : the tax will be 35%.
Therefore, the management company from Cupertino immediately announced that it would be not only to buy up shares , but also to sell debt. Credit rating of AA, assigned by Apple, lets take so profitable that even a partial refund cache looks ridiculous on such a background . Company’s bonds will be placed in both the U.S. and abroad . Experts say that the international bond auctions are aimed primarily at investors from the euro zone , where interest rates are even lower than in America.
It is interesting that Apple once again expands the list of investors , exactly the same as it should happen within a split : Recall that instead shares at $525 each to the shareholders already June 2 will distribute new – cheap paper for $75 (if it quotes until the summer will not change ) . But they will be much easier to sell , and Apple shareholder base should increase substantially . In fact, Tim Cook wants to make your business even more popular in the exchange environment , providing access to a greater number of shares of the players.
Experts say Vestifinance, the company from Cupertino confident maneuvering on the financial market . Stock split within the split will allow to enter the Dow Jones. Dividend increase and expansion of the program to repurchase shares of support . Selling debt without having to face the return of the cache from overseas banks and attract the ownership of securities of large foreign investors.
Meanwhile , Apple is preparing to release iPhone 6 , iWatch and other devices capable of supporting the growth of sales . Report for the last quarter was also better than expected. Finally, in the last 18 months Apple bought 24 companies and is not going to leave the market M & A. Perhaps the most innovative company of the American giant will not be called , but in the ability of business to earn tens of billions of both the retail and the financial market , no one doubts .