Apple has officially finalized a $7.5 billion bond offering following an outpouring of investor interest. The offering consists of seven bond series with maturities ranging from 2028 to 2036. Net proceeds are expected to be approximately $7.47 billion after fees and expenses.
Breakdown of the Bond Series
Two series are floating-rate bonds: one for $500 million maturing in 2028 and another for $750 million maturing in 2029. The remaining five series carry fixed interest rates:
- $1 billion maturing in 2028 at 4.65% annual rate
- $1 billion maturing in 2029 at 4.75%
- $1 billion maturing in 2031 at 4.90%
- $1.25 billion maturing in 2033 at 5.10%
- $2 billion maturing in 2036 at 5.35%
Purpose & Market Reception
The funds raised will support Apple’s general corporate needs, including potential stock buybacks, dividend payments, acquisitions, and paying down existing debt. This comes after a preliminary prospectus filed with regulators revealed Apple planned to raise around $7 billion through the issuance. Within hours of that disclosure, investor demand reportedly surpassed $30 billion.
Floating-rate bonds have variable interest rates tied to market benchmarks, while fixed-rate bonds lock in their rates for the life of the security. Apple retains the flexibility to pay off some fixed-rate debt before maturity, depending on future financial conditions.
After deducting underwriting discounts and offering expenses, the company expects to net about $7.47 billion from the offering.
