Ondrej Holzman Last week Apple he announced, that he intends to return up to $100 billion to investors in the coming years, more than double the original plan, and despite having a huge fortune in his accounts, he will willingly take on debt to do so. Apple is planning a record bond issue, borrowing for the first time since 1996.
At announcement of financial results for the last quarter In addition to the increase in the program for returning money to shareholders, Apple also announced an increase in the funds for the repurchase of shares (from 10 to 60 billion dollars) as well as a 15% increase in the quarterly dividend to 3,05 dollars per share.
Because of these massive changes (the stock buyback program is the largest in history), Apple will issue bonds for the first time in history, at a record $17 billion. Outside the banking sector, no one issued a larger bond issue.
At first glance, Apple's voluntary debt may seem like a surprising move, considering that the California company has $145 billion in cash and has been the only major technology company with no debt. But the catch is that only about $45 billion is available in American accounts. Therefore, borrowing money is a cheaper option, as Apple would have to pay high taxes of 35 percent when transferring money from abroad.
Apple's issue will be divided into six parts. Financial institutions Deutsche Bank and Goldman Sachs, the managers of the issue, will offer investors tranches with three-year and five-year maturities with fixed and floating interest rates, as well as ten-year and thirty-year fixed-rate notes. A total of $17 billion will be raised by Apple as follows:
- $1 billion, floating interest, three-year maturity
- $1,5 billion, fixed interest, three-year maturity
- $2 billion, floating interest, five-year maturity
- $5,5 billion, fixed interest, ten-year maturity
- $4 billion, fixed interest, five-year maturity
- $3 billion, fixed interest, thirty-year maturity
Apple is hoping that bigger shareholder rewards, which investors themselves have been clamoring for, will help the falling stock price. It has fallen by $300 since last year, however, in recent days, especially after the announcement of the latest financial results and the announcement of the new program, the situation has improved and the price goes up. We are also waiting for a new product, which Apple has not presented for six months, because it could also have a significant impact on the share price.
Jesus, who invented such a moron. Why should a company go into debt just to return a dividend to shareholders? Let them jerk off. Should Tim do the same as Steve -> say he needs the money for development and research...
Going into debt for this is the biggest bullshit they can do. They should rather do a share buyback.
Complete agreement …
The shareholder is the owner of the company, why should he get upset? A shareholder wants to see some return on investment. If the shareholders don't want dividends, let them choose another management. Apple is sitting on money abroad only because the transfer to the US is subject to such high taxation. For a stock buyback, the stock price doesn't have to be low enough yet to make it worthwhile for Apple.
The owners can also get up and say to themselves that Tim won't be the right one to provide them with money... Wouldn't there be a handy lemonade seller?
I don't really understand this, but Tim is good at this, so I'm not worried here. Even when Steve was a Jew and that literally :) and it worked too.
I don't know anything about this shit about events, but I believe that Apple has calculated it very well.