Apple reportedly readies $17 billion bond offering, preps for acquisition spree

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Apple is preparing to raise $17 billion (about ₤ 10bn, or AU$ 18.3 bn) in a bond providing, according to numerous reports. The money generated would apparently be made use of to money a share buyback and to initiate a round of acquisitions.

During the business’s earnings call last week, during which it revealed it offered 43.7 million iPhones and 16.3 million iPads in Q2, Apple stated it would increase its share buyback from $60bn (about ₤ 35.7 bn, or AU$ 64.8 bn) to $90bn (about ₤ 53.5 bn, or AU$ 97.2 bn). Apple has roughly $150 billion (about ₤ 89b, or AU$ 152bn) in cash, 88 % which is held overseas. Nevertheless, the company would be required to pay 35 % in taxes to bring the money back into the United States.

Apple has $38 billion (about ₤ 22,6 bn, or AU$ 41bn) in domestic cash but would like to enhance domestic liquidity in order to ‘grow business and execute capital expenses and acquisitions,’ Luca Maestri, Apple’s CFO said, during the profits call.

Historical significance

The bond issuance would be the 2nd biggest corporate bond sale of perpetuity, behind Verizon’s $49 billion (about ₤ 29.1 bn, or AU$ 53bn) issuance, and simply ahead of Apple’s six-part $17 billion (about ₤ 10bn, or AU$ 18.3 bn) bond offering, both which took place in 2012. The providing might happen as soon as today, according to Bloomberg.

Apple didn’t promptly react to a demand for comment.

Apple has actually gotten 24 business in the past 18 months, including latest purchases photo app business SnappyLabs and iOS screening platform Burstly.

What might be…

The Cupertino-Calif.-based company is ‘closer than ever’ to launching new product, according to a statement made by CEO Tim Cook. New gadgets include an iWatch and an Apple TELEVISION set-top box. Apple is likewise rumored to be introducing updates to its 11-inch and 13-inch MacBook Airs next week, and it’s reported to be buying a mobile payments service.