Apple Offers $17 Billion in Bonds, Largest Non-Bank Bond Deal in History

Posted April 30, 2013 at 8:00pm by iClarified | Please help us and submit a translation by clicking here | 6526 views

Apple today offered $17 billion worth of bonds for sale in the largest non-bank bond deal in history, reports Reuters.

Apple came to market with the massive deal to raise funds for an ambitious program that will return $100 billion in cash to holders of Apple shares. Sources said investors could barely submit orders fast enough to get in on the deal from Apple, the only major tech company without a single penny of debt on its books.

The deal attracted over $50 billion in orders by midday, says Reuters. The previous largest deal was $14.7 offering from AbbVie last November.

"Apple made its intentions clear that this deal is for shareholder-friendly activity, but they have tremendous metrics and brand recognition," Rajeev Sharma, portfolio manager at First Investors Management. "Apple is something everyone wants in their portfolio."

The mega-deal was led by Deutsche Bank and Goldman Sachs. It offered $1 billion of three-year floating-rate notes, $1.5 billion of three-year fixed-rate notes, $2 billion of five-year floating-rate notes, $4 billion of five-year fixed-rate notes, $5.5 billion of 10-year fixed-rate notes and $3 billion of 30-year fixed-rate notes.

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El Compa - May 1, 2013 at 10:27am
I don't know what the hell that all means!
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