By now, you have probably heard of Apple’s large excess of cash on hand. The company is perhaps one of the most cash rich in the world, and has decided that it would give $100 billion back to its investors over the next two years.
Today, Apple officially opened up sales of $17 billion in bonds in order to finance its payments to its own investors, as the company has decided it would rather sell bonds than bring its overseas cash back into the States. The bond deal has become the largest bond deal not through a bank in history.
Reuters has reported that there are six different types of bonds being offered by Apple:
$1 billion, floating rate, three year maturity
$1.5 billion, fixed-rate, three year maturity
$2 billion, floating-rate, five year maturity
$5.5 billion fixed rate, ten year maturity
$4 billion fixed rate, five year maturity
$3 billion fixed rate, thirty year maturity
Apple’s hope is to keep investors happy by paying them back $100 billion in investments. What do you think? Do you think it is smart of Apple to pay back its investors? Do you think it was smarter for the company to go into debt to do it, or do you think Apple should have brought back its cash to the States? Leave us a comment below!