Apple seeks $7 billion through bond sale
What's the story
Apple is looking to raise around $7 billion through a US-dollar bond offering, Bloomberg reported on Thursday. The tech giant's move comes as part of a wider trend in the industry, with major companies tapping into debt markets for funding their artificial intelligence (AI) expansion efforts. However, no final decision has been made on the size of the sale yet, which could change depending on investor demand.
Offering specifics
Details of Apple's bond offering
The initial price guidance for the longest-dated tranche of Apple's bond offering is set at 80 basis points over US Treasuries, Bloomberg reported.
The seven-part offering consists of two floating-rate notes maturing in 2028 and 2029, along with five fixed-rate notes maturing between 2028 and 2036.
Goldman Sachs, Bank of America Securities, Deutsche Bank Securities, and JPMorgan are joint book-running managers for this major financial move by Apple.
Fund utilization
Apple's history with bond market
The money raised from this bond sale will be used for general business purposes, including share buybacks and repaying outstanding debt.
This isn't Apple's first time in the bond market; it last raised funds through bonds in May 2025, selling $4.5 billion of debt in a four-part deal that attracted $10 billion worth of orders.