Latest in Apple

Image credit:

Apple's $17 billion bond deal is the largest in history

Sponsored Links

The Wall Street Journal reports that Apple made the largest corporate-bond deal in history on Tuesday, when it raised US$17 billion in bonds -- the first time the company has offered bonds in 20 years.

In response, The New York Times asks, why would cash-rich Apple do this in the first place? Analysts tell the NYT that the debt actually can boost returns to shareholders, something Apple has already taken steps to do when it announced its dividend and share-repurchase program last week and in March 2012. In the process, Apple was using historically low rates to its advantage. The company can step around the taxes it would need to pay by repatriating some of its overseas cash stockpile, buying the company more time to lobby Congress to its advantage.

We reported shortly before the deal took place that Apple was filing the required SEC paperwork. The company plans to return $100 billion to stockholders by the end of 2015. Its next dividend payout is May 16.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share

Popular on Engadget

Presenting the Best of CES 2021 winners!

Presenting the Best of CES 2021 winners!

View
ICYMI: More gadget highlights from CES 2021

ICYMI: More gadget highlights from CES 2021

View
Canon made a site that lets you 'take photos' from a real satellite

Canon made a site that lets you 'take photos' from a real satellite

View
The safest messaging apps

The safest messaging apps

View
Netflix buys Gal Gadot's spy thriller 'Heart of Stone'

Netflix buys Gal Gadot's spy thriller 'Heart of Stone'

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr