Details of Apple's expected bond sale have now been confirmed in SEC filings, which show the company aims to raise a slightly higher than expected $7.5 billion.
It had been reported that Apple was aiming to raise around $7 billion through this bond offering, which is the sale of debt. That report was based on a preliminary filing with the SEC, but now the final pricing term sheet has been published.
This filing confirms that Apple plans to issue bonds in seven series that would mature between 2028 and 2036:
- 2028: $500 million in floating-rate bonds plus $1 billion in fixed-rate bonds with a 4.65% annual interest rate
- 2029: $750 million in floating-rate bonds plus $1 billion in fixed-rate bonds with a 4.75% annual interest rate
- 2031: $1 billion in fixed-rate bonds with a 4.90% annual interest rate
- 2033: $1.25 billion in fixed-rate bonds with a 5.10% annual interest rate
- 2036: $2 billion in fixed-rate bonds with a 5.35% annual interest rate
Those floating-rate bonds will be at interest rates tied to the Secured Overnight Financing Rate (SOFR), which is adjusted every quarter. The fixed-rate notes are obviously constant.
What Apple gets
While the filing is for $7.5 billion, Apple actually expects to get around $7.47 billion. That's accounting for various costs and discounts.
Apple has filed that it intends the proceeds to be spent on "general corporate purposes, including repurchases of our common stock and payment of dividends under our program to return capital to shareholders, funding for working capital, capital expenditures, acquisitions and repayment of debt."
There is no breakdown of what proportion of the $7.47 billion will be spent on any of these areas.
