http://www.sec.gov/Archives/edgar/data/320193/000119312514394996/d812009d424b2.htm Looks like Apple is trying to raise $1 billion off of European debt sometime in the next decade. Eight year notes will give investors 1.1% and twelve year notes will give them 1.7%. Apple will be using the cash raised for stock buybacks, dividends, and other general corporate purposes. Seems like a relatively small amount considering the massive cash reserves they have on hand.
I can't argue with what you've already said. Apple's got plenty of cash in hand right now, considering how well the stock has been performing. None of this should come as a surprise to anyone, of course. I would love to take some Euro bonds anyways. ;] Not that that's exactly a possibility.
I would agree that Apple has a lot of money in hand, in investments, and in arguably, the bank. Is it that Apple wants to raise $1 Billion to right off European debt or create additional revenue? I would go with "to raise additional revenue as I do not see any reports of Apple having any debt." If a company is issuing more shares to buy back some shares, obviously they are going to use a little less than what they got from the IPO to buy back some shares and then the rest for shareholder dividend payments, but my question is, why issue more shares just to do that, since there is talk of extremely large amounts of cash in hand, why not use that money to do what you intend to do with the proceeds from the IPO that will be issued? Buying shares back from shares that you issued elsewhere doesn't seem to add up for me.
I think Apple will need to start worrying about gov´t intervention and anti-competitive practices if they keep buying stuff. One of the problems they have is that because they have won so many lawsuits against patent infringements, they have dealt deathblows to a lot of competitors in certain markets. Would like to see them buy some of their suppliers or expand into places where they don´t dominate though.
If you look at the past debt that apple has, a lot of it is in euros too. I guess they are assuming that the euro will continue to fall (not a bad assumption by the way) which would make it easier for them to pay back in euros instead of dollars.
