Apple Inc. has placed its first notes with a 40-year maturity
August 14, 2020
Yesterday, August 13, Apple Inc. has placed its first notes with a 40-year maturity. It is the longest company's fixed income debt ever. Spread to US Treasury bonds was 118 bp. It made the borrowing cheaper than for Amazon.
Let's congratulate Apple. It was its 100th bond issue, which makes it one of the most frequent borrowers among corporate issuers all over the world.
Along with the 40-year bond, the company placed 5-, 10-, and 30-year notes. The total amount of yesterday's issue reached $5.5 bn. After this placement, Apple's total fixed income debt amounts to approximately $100,76 bn with 67 outstanding issues.
Bank of America Merrill Lynch, Barclays, Goldman Sachs, JP Morgan, Morgan Stanley were bookrunners. The company entered the debt market, not because of difficulties, but because borrowing is cheap right now.
Company — Apple
Full nameApple Inc
IndustryInformation and High Technologies