Apple (AAPL) on Monday filed plans to sell about $5 billion dollar-denominated bonds that mature in 5 to 30 years, with a 10-year bond expected to yield about 0.95 percentage points more than similar-maturity Treasuries. Cupertino is tapping the market days after it reported the biggest quarterly profit in corporate history, earning $3.06 per share, $0.46 above estimates, on revenue of $74.6 billion.
The iPhone maker was last in the dollar bond market in April last year when it brought forward a highly sought after seven-tranche issue valued at $12 billion. This is the tech giant’s fourth multi-billion dollar debt offering in the past two years.
The debt sale comes at a time when investors say demand is high for bonds from companies with high credit ratings. Moody’s (MCO) pegs Apple Aa1, the second highest rating available. It also comes after the company said its cash mountain now stands at $178 billion as of the end of the December quarter.
Deutsche Bank (DB) and Goldman Sachs (GS) are the only two listed active bookrunners on the trade.
Apple shares were flat at $117 a share in midday trading on Monday.