NEW YORK (Reuters) – Apple Inc (AAPL.O) on Monday capitalized on the Federal Reserve’s emergency measures in response to the coronavirus outbreak to issue its cheapest bonds in years, making it the latest blue-chip company to do so to fund stock buybacks and dividends.
FILE PHOTO: FILE PHOTO – The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in Manhattan, New York, U.S., October 16, 2019. REUTERS/Mike Segar/File Photo
Apple’s offering illustrates how companies with the best credit ratings are boosting shareholder returns by tapping cheap debt made available through the Fed’s backstopping of the credit markets. Apple shares are virtually flat year-to-date, compared with a 12% drop in the S&P 500 Index .SPX.
The technology company raised $8.5 billion by selling four different bonds with maturities ranging from three years to 30 years. It sold a $2 billion three-year bond and a five-year $2.25 billion with coupons of 0.75% and 1.125% respectively,…
Source Reuters Tech News
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