Andre Yoskowitz
29 Apr 2013 23:22
Apple took the first steps towards its first ever debt sale, as the company plans to use the money to fund its massive $100 billion share buyback program.
The company filed SEC paperwork and has spoken with Deutsche Bank and Goldman Sachs.
Because of Apple's brand, it is expected that the company could offer the bonds at rates even cheaper than that of the AAA rated Microsoft, and others. Apple was recently given the second best credit rating, AA+. Apple has $145 billion in cash, but only $45 billion is liquid and available in the U.S. Bringing the funds home would cost the company a mini fortune in taxes.
Investment bankers believe Apple can offer 10 year bonds with an interest rate of 2.2%, 50 basis points higher than Government Treasuries.