Apple is not going through its best moment, economically speaking they can be calm in Cupertino, because their coffers are still full, but from Wall Street they do not see very clear the future of the company and this is affecting the value of their shares. Yesterday we woke up with some surprising news Apple is no longer a debt free company , as it has just announced the issue of 17 billion dollars in bonds.
Apple will go to the market to launch a plan to buy back shares and increase dividends
Does this mean that Apple needs money? Not at all, the 142 billion dollars in cash guarantee it, but the problem the company has is that most of its assets are outside the United States and repatriating them imposes a very high tax. For this reason, and as already predicted last week when they presented their financial results, Apple will go to the debt market to finance a plan valued at 100,000 million dollars .
According to the different investors, Apple will have no problem exceeding the value of the offer, even tripling it. In fact, some sources reveal that the offer has already generated more than $50 billion . Goldman Sachs and Deutsche Bank will be the two entities responsible for placing the bonds.
In the time that TimCook has been at Apple’s helm, we have seen how it has become quite different from Steve Jobs’ economic policies. The company’s co-founder was reluctant to issue debt, while Cook favors capital repatriation, dividend payouts and share buybacks .
On the other hand, Steve Jobs never had to face a stock market crash like the one Apple is suffering during this last year. For this reason, Cook decided to reward the loyalty of his shareholders by offering a new dividend and with this new news he intends to continue on the same path.
As they point out on iPhone in Canada, until now the largest debt issue had been made by Roche, in February 2009, but now Apple has far exceeded that figure and has become the non-financial company that has issued the most debt . Would Jobs agree with the decision just made by Tim Cook?
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