Apple eyes bond offer to raise even more cash, report says
It's said to be working with Deutsche Bank and Goldman Sachs to possibly offer bonds partly in euros, which would mark the first time it has offered bonds on a non-US currency.
Apple is considering selling bonds on the open market to raise cash, a new report claims.
The iPhone maker is working with two investment banks -- Deutsche Bank and Goldman Sachs -- to announce a new bond sale in Europe, the Wall Street Journal is reporting, citing people who claim to have knowledge of its plans. At least part of the offer would be in euros, marking the first time Apple has offered bonds in a currency other than the US dollar.
The Journal's sources didn't say how much any upcoming bond sale would go for. Last year, Apple sold $17 billion in bonds and followed that up in April with a $12 billion offering.
Companies often offer bonds to raise some quick cash from investors at a specified interest rate. Because Apple is viewed as a solid company and its bond rating is high, the company has offered slim three-year yields on the cash it raises. In April, in fact, Apple's bond sale delivered only 1 percent in yield for a three-year bond.
Exactly what Apple, a company that has a vast cash hoard and that continues to pull in billions each quarter, would want to do with the cash is unknown at this point. In some cases, companies that perform well offer bonds to raise debt, cut into their taxable income, and return the cash to shareholders without over-leveraging their cash.
Apple did not immediately respond to a request for comment on the alleged bond sale.