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Apple Has $200 Billion In Cash – But It’s Borrowing $7 Billion Anyway

A sign of the times...

In a sign of the times, a company that's sitting on some $200 billion in cash is borrowing $7 billion in a five-part offering that includes a 30-year note yielding 1.03% over Treasurys. That company: Apple, which tapped BofA, Deutsche and Goldman to manage the sale, its first in two years. Here are the details: $1b 3Y Fixed (Sept. 11, 2022) at +35 Guidance +35#, IPT +55 area Coupon: 1.70% MWC See security information: 3Y Fixed $750m 5Y Fixed (Sept. 11, 2024) at +53 Guidance +55a (+/-2), IPT +70 area Coupon: 1.80% 1-month par call, MWC See security information: 5Y Fixed $2b 7Y Fixed (Sept. 11, 2026) at +68 Guidance +70a (+/-2), IPT +87.5 area Coupon: 2.050% 2-month par call, MWC See security information: 7Y Fixed $1.75b 10Y Fixed (Sept. 11, 2029) at +78 Guidance +80a (+/-2), IPT +100 area Coupon: 2.20% 3-month par call, MWC See security information: 10Y Fixed $1.5b 30Y Fixed (Sept. 11, 2049) at +103 Guidance +105a (+/-2), IPT +125 area Coupon: 2.950% 6-month par call, MWC See security information: 30Y Fixed Apple is hardly alone. Issuance clocked in at more than $
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3 comments on “Apple Has $200 Billion In Cash – But It’s Borrowing $7 Billion Anyway

  1. Harvey Cotton says:

    I would like an explanation of why Apple is paying any premium over Treasurys. It is the equivalent of a G20 country with a New Zealand worth of cash reserves. It could create its own digital currency within weeks, and if you had to bet your kids, which entity would you wager will redeem its obligations anywhere close to real face value in 2049?

  2. Anonymous says:

    Meanwhile, trillions of useless student loan dollars are quietly gathering interest at 6% rate with politicians simply pushing the doomsday scenario forward. And one wonders how QE didn’t trickle down to the working class level

  3. Patrick says:

    Poor liq­uid­ity = harder to buy or sell as­sets on demand (dif­fer­ence be­tween buy & sell prices in open mar­ket can be so far apart that fair level isn’t clear, or there can be too few con­tracts of stocks or de­riv­a­tives avail­able to buy or sell at de­sired price
    @WSJ
    Posted by Liz Ann Sonders on Twitter

    I thought it was interesting as you penned an article about two years a go on liquidity (lack of) in time of urgency.

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