Apple sold $108 billion of bonds on Wednesday, in what may be the largest corporate bond sale on record. The sale is part of Apple’s plan to boost its cash pile.
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On Wednesday, Apple announced that it would sell $108 billion in bonds, the largest corporate bond sale on record. The move is Apple’s latest effort to boost its already large cash pile, which currently stands at $193 billion.
The bond sale will give Apple additional funds to invest in its business, pay dividends to shareholders, or buy back shares. It also comes at a time when interest rates are low, so Apple can lock in relatively low borrowing costs.
The sale is expected to be well-received by investors, given Apple’s strong financial position and AAA credit rating. And it comes as no surprise that Apple is taking advantage of the current market conditions to borrow money cheaply.
What is a bond sale?
A bond sale is when a company sells bonds to investors in order to raise money. The company can use this money for anything it wants, such as expanding its business or paying off debts. The bonds are like IOUs, and they mature in a certain number of years. Investors get interest payments from the company every year until the bonds mature, at which point they get their money back.
Apple’s $108B bond sale is one of the biggest in history, and it will help the company boost its cash pile. This is important because Apple has been using its cash to buy back its own shares, and this bond sale will give it more cash to do so. In addition, Apple can use this money for anything else it wants, such as expansion or acquisitions. So, this bond sale is a win for Apple and its shareholders.
How does this bond sale benefit Apple?
The sale of $108 billion in bonds is a way for Apple to boost its cash reserves. The company will use the money to fund share buybacks and dividends, as well as for general corporate purposes.
This is the largest bond sale ever by a U.S. company, and it comes at a time when interest rates are low. That means that Apple will be able to get very favorable terms on the loan, which will save the company money in the long run.
The bond sale is also Sign that investors are still confident in Apple’s future. The company has been facing some headwinds recently, with concerns about iPhone sales and the overall health of the global economy. But this successful bond sale shows that investors remain bullish on Apple’s prospects.
What does this mean for investors?
This move by Apple is sure to please investors who have been pushing for the company to return more of its huge cash hoard to shareholders. While Apple has been buying back shares and paying dividends, it has lagged other companies in these shareholder-friendly moves.
With this bond sale, Apple will have more cash on hand to continue its share repurchases and perhaps even raise its dividend. This is good news for investors who own Apple stock and will likely lead to a higher stock price.
In conclusion, Apple’s $108B bond sale is a great way for the company to boost its cash reserves. By selling bonds, Apple can raise money without having to issue new shares of stock or take out loans. This will give Apple more flexibility in how it uses its cash, and it will also help to keep shareholder equity high.