Apple is reportedly seeking to raise up to US$7 billion through a seven-tranche U.S. dollar bond offering with the company marketing both fixed- and floating-rate notes, according to Bloomberg News.
The proposed deal includes floating-rate notes due in 2028 and 2029, alongside fixed-rate securities with maturities in 2028, 2029, 2031, 2033 and 2036.
Initial price guidance on the fixed-rate portions ranges from 45 basis points over comparable U.S. Treasuries for the two-year notes to 80 basis points for the 10-year securities. The floating-rate tranches are being marketed at spreads equivalent to SOFR.
Bank of America, Deutsche Bank, Goldman Sachs and JPMorgan are managing the transaction. Apple’s debt carries expected ratings of Aaa from Moody’s and AA+ from S&P.
Apple said proceeds would be used for general corporate purposes, including share repurchases, dividend payments, working capital, capital expenditures, acquisitions and debt repayment, according to investing.com.
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Article provided with permission from AppleWorld.Today
