Apple has priced a $7.5 billion bond offering, according to a final pricing term sheet the company filed with the U.S. Securities and Exchange Commission on Friday. The size is slightly above the roughly $7 billion that had been reported a day earlier, when Bloomberg said investor orders far exceeded the amount on offer.
Seven series, 2028 to 2036
The offering is split into seven series. Two are floating-rate notes: $500 million due in 2028 and $750 million due in 2029. The 2028 notes pay interest at compounded SOFR plus 0.33 percent and were sold at par, based on the SEC filing. The other five are fixed-rate bonds, which 9to5Mac reports as follows:
- $1 billion due 2028 at 4.65 percent
- $1 billion due 2029 at 4.75 percent
- $1 billion due 2031 at 4.90 percent
- $1.25 billion due 2033 at 5.10 percent
- $2 billion due 2036 at 5.35 percent
Taken together, the floating-rate portion comes to $1.25 billion and the fixed-rate portion to $6.25 billion.
What the money is for
Apple expects net proceeds of about $7.47 billion after underwriting discounts and offering expenses, according to 9to5Mac's reading of the filings. In the preliminary prospectus, Apple says the proceeds will go toward general corporate purposes. That wording can cover stock buybacks, dividends, acquisitions and the repayment of existing debt, although Apple has not tied this particular offering to any one of those uses.
Context
The preliminary prospectus was filed on November 5 and described bonds maturing between 2028 and 2036. Apple has issued debt periodically for years even while holding a very large cash pile, and the company's most recent earnings report showed record research and development spending alongside strong Mac sales.
Apple did not publish a newsroom post about the sale, and the underwriters were not named in the coverage reviewed for this story. Investors can find the full terms, including call provisions and the details of each series, in the term sheet on the SEC's EDGAR system.
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