“Cupertino, Calif.-based Apple sold $12 billion of debt of varying maturities at interest rates that were mostly less than a percentage point above comparable U.S. Treasury debt, highlighting widespread faith in the iPhone maker’s prospects. Investors flocked to the offering, placing more than $40 billion in orders.”
A year ago, Apple sold $17 billion in bonds – a new record for corporate debt – to provide funding for its initial buybacks and dividends. In both cases, the tech giant only had to offer less than 1 percentage point above Treasury bonds, which are a safe form of government backed investment.
Apple will use proceeds from its bonds sale, which are rated double-A-plus, the second-highest rating, to fund the buyback rather than tap its massive $150 billion cash pile.
AAPL was up 0.94% to $ 597.77 at 1:17PM EDT on Wednesday.
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