Apple Reportedly Set To Raise $7.5B From Bond Offering Amid Market Selloff

Bank of America reiterated a Buy rating on Apple (AAPL) with a $370 price target, citing strong iPhone sales and long-term AI opportunities. Apple's Q4 revenue rose 12% YoY to $114.5B, with iPhone revenue up 17%. However, margin pressure from higher memory costs and slowing Services growth are concerns. BofA expects iPhone growth to continue but notes near-term margin compression.

Apple, Google, and Microsoft issued bonds totaling $38.5 billion to fund AI expansion and pay debt. Apple sold $7.5 billion, Microsoft $25 billion, and Google €6 billion.

Apple plans to raise up to $7 billion via a seven-tranche U.S. dollar bond offering, including fixed- and floating-rate notes. The bonds have maturities ranging from 2028 to 2036, with initial price guidance from 45 to 80 basis points over U.S. Treasuries. Proceeds will be used for general corporate purposes, including share buybacks and debt repayment.

Apple raised $7.5 billion from a bond offering, with strong investor demand. The proceeds will fund general corporate expenses, including share buybacks. The bonds, due in 2036, offer a yield premium of 0.55% above Treasuries, lower than recent offerings from Microsoft, Meta, and Oracle. Apple is rated AA+ by S&P Global.

Apple is raising $7.5 billion through a seven-part US-dollar bond offering, according to a term sheet seen by Reuters. The offering includes floating and fixed-rate notes maturing between 2026 and 2036, with coupons ranging from 4.65% to 5.35%. This follows a $4.5 billion bond sale in May 2022. The company did not comment on the sale, and the underwriters declined to confirm the size of the offering.

Apple reported Q4 revenue of $114.5B (+12% YoY) and EPS of $2.10 (+14% YoY), with record iPhone and Services revenue. Alphabet saw Google Cloud revenue surge 103% YoY to $30.7B, driving total sales up 25% to $127.6B. Meta's revenue rose 26% YoY to $64.6B, with strong ad demand and AI improvements.