The Buzz
Apple prices record $17 billion bond sale
April 30, 2013: 11:24 AM ET
Apple sold $17 billion worth of bonds late Tuesday in the largest sale of corporate bonds ever.
The company offered both fixed and floating rate bonds, with maturities of of 3, 7, 10 and 30 years.
At $17 billion, the offering trumps Roche Holdings' $16.5 billion bond sale in 2009, according to data from Dealogic.
Apple saw strong demand for its bonds, which were rated Aa1 by Moody's and AA+ by Standard & Poor's.
"Whenever a company that's so highly rated comes to market, it's a big deal," said Jody Lurie, a fixed-income analyst at Janney Montgomery Scott.
Apple (AAPL) did not immediately respond to a request for comment. The deal's underwriters, Goldman Sachs (GS) and Deutsche Bank (DB), declined to comment.
Standard & Poor's and Moody's have already given Apple high credit scores, though Fitch has said the company's business model is not consistent with a AAA rating.
Related: Which is worth more, coffee w/Tim Cook or a Lamborghini?
There are only a handful of companies that have AAA ratings, so Apple's AA rating will make it popular with insurance companies and other institutions that need to hold high-quality assets, said Lurie.
"Everyone wants a bite of the Apple," she said, adding that the order book for Apple's offering is rumored to have already reached $40 billion.
Apple said earlier this month that it would tap the bond market as part of a plan to increase its share buyback program to $60 billion and boost its third-quarter dividend.
The move is unusual for Apple, which has not sold debt to the public since 1996.
Apple has amassed a cash hoard worth $144 billion as of the first quarter. However, much of that cash is stashed in overseas accounts, which means Apple would face a hefty tax bill if it were to bring the money home.
Apple joins a growing number of major technology companies that are taking advantage of record low interest rates. Microsoft (MSFT), for example, sold $2 billion worth of bonds last week.
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Apple's tax dodge
Instead of using its own cash hoard to reward shareholders, Apple plans to go into debt for the first time ever.
Apple CEO Tim Cook said late Tuesday that the company will double the amount it returns to shareholders through share buybacks and dividends by 2015, but will "access the debt market" to pay for it.
Borrowing money seems odd for a company like Apple (AAPL), which has $144 billion in cash. But more than MORE
Hibah Yousuf - Apr 24, 2013 2:47 PM ETPosted in: Apple, bonds, Cisco, debt, dividend, einhorn, Google, interest rates, investors, Microsoft, share buyback, stock buyback, tax, yields -
Microsoft and other tech dinosaurs rally
Dinosaurs are extinct. But dinosaur tech stocks? They're thriving lately.
Microsoft (MSFT) was up 2% Wednesday and shares passed $30 for the first time since October. That move comes after a nearly 4% rise on Tuesday. Intel (INTC), the chip yin to Microsoft's operating system yang in the Wintel PC market, rose 3% Wednesday. It was up 3% Tuesday too. And Cisco Systems (CSCO) followed up a 2% pop on Tuesday MORE
Paul R. La Monica - Apr 10, 2013 12:23 PM ET -
Apple isn't only company with too much cash
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Issuing preferred shares that pay a big dividend may not be the best use of Apple's more than $137 billion of cash and liquid investments. But hedge fund manager and Apple shareholder David Einhorn, who MORE
Paul R. La Monica - Feb 12, 2013 12:01 PM ET -
Investors hoping Microsoft lives up to the hype
Microsoft (MSFT) reports earnings after the bell and investors are hoping the tech giant hasn't overpromised.
Shares were up about 1% Thursday afternoon. The stock has had a rough year, what with flagging Windows sales and all, but Microsoft is hoping to turn things around. And this may be its time to shine.
Windows sales have slowed for four straight quarters (year over year), but the advent of MORE
Catherine Tymkiw - Jan 24, 2013 2:33 PM ET -
Google under pressure ahead of earnings
Google is reporting earnings after the bell Tuesday and all eyes will be on the search giant's expenses as it transitions deeper into other markets.
Last year, Google (GOOG) completed its biggest acquisition ever, when it paid $12.5 billion for Motorola Mobility. That deal gave Google access to more than 17,000 patents that will help keep lawsuits from Apple (AAPL) and Microsoft (MSFT) at bay.
Gaining Motorola also opened a window into MORE
Catherine Tymkiw - Jan 22, 2013 11:59 AM ETPosted in: advertising, Android, Apple, earnings, Google, Microsoft, motorola, smartphone, stock, StockTwits -
Microsoft: 'Air ball' of a tech stock
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Just call Microsoft the Seattle Not-So SuperSonics.
Microsoft (MSFT) CEO Steve Ballmer is part of a group that may buy the NBA's Sacramento Kings and bring professional basketball back to the Emerald City. But hoops-starved fans MORE
Paul R. La Monica - Jan 10, 2013 1:10 PM ET -
Special dividends: Big waste of cash for tech
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.
Apple (AAPL) has more than $120 billion in cash. Microsoft (MSFT) is sitting on $66.6 billion. And Cisco Systems (CSCO) has $45 billion in "caysh." So will any of these firms join the latest craze that's MORE
Paul R. La Monica - Dec 4, 2012 1:25 PM ET -
Sinofsky's departure 'a clear blow' to Microsoft
Microsoft stock could remain under pressure as investors consider the ramifications of Windows chief Steven Sinofsky's sudden departure from the company after more than 20 years of service.
Shares of Microsoft (MSFT) dropped more than 5% early Tuesday to $26.75, the lowest level since January. By the afternoon, the stock pared some of the losses, but was still down about 3%.
Sinofsky's exit came as a surprise, coming just two weeks after Microsoft's launch of MORE
Hibah Yousuf - Nov 13, 2012 1:19 PM ET -
AOL's stock soars on earnings
It's the 21st century, and AOL's stock is soaring. And no -- those two facts are not mutually exclusive.
Shares of AOL (AOL), an Internet pioneer way back in the 1990s, spiked more than 15% Tuesday after the online content provider announced third-quarter revenues and earnings that beat analyst forecasts.
Investors are continuing to place bets that AOL will not only stop its internal bleeding but that a turnaround is afoot. MORE
Maureen Farrell - Nov 6, 2012 12:31 PM ET
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