Summary
Apple Inc. filed an 8-K on September 10, 2019, to report the consummation of a significant debt issuance that closed on September 3, 2019. The company successfully issued and sold a total of $7.25 billion in aggregate principal amount of senior unsecured notes across five different maturities: 2022, 2024, 2026, 2029, and 2049. This debt offering was conducted under Apple's existing shelf registration statement filed in November 2018 and was facilitated by an underwriting agreement with several prominent financial institutions. The issuance of these notes, bearing interest rates ranging from 1.700% to 2.950% and paid semi-annually, indicates Apple's strategic approach to managing its capital structure and funding its operations or strategic initiatives. The notes rank equally with Apple's other existing unsecured and unsubordinated debt, meaning they are of the same priority as most of Apple's other corporate borrowings. This move provides Apple with substantial liquidity and flexibility, likely to support its ongoing business activities, research and development, or potential acquisitions.
Key Highlights
- 1Apple successfully issued $7.25 billion in aggregate principal amount of senior unsecured notes.
- 2The debt issuance comprises notes with maturities in 2022, 2024, 2026, 2029, and 2049.
- 3Interest rates on the notes range from 1.700% to 2.950%, paid semi-annually.
- 4The notes were issued under Apple's existing Form S-3 shelf registration statement.
- 5The debt ranks equally with Apple's other unsecured and unsubordinated obligations.
- 6The issuance was facilitated through an underwriting agreement with Goldman Sachs & Co. LLC, BofA Securities, Inc., and Deutsche Bank Securities Inc.