– Apple Launches $17 Billion Bond Offering: Largest Ever For Non-Financial Firm (ZeroHedge, April 30, 2013):
And there it is. Moments ago Bloomberg disclosed the final terms of the just launched Goldman-led syndication of AAPL paper. The total size: $17 billion, which surpasses the previous record set by Roche at $16.5 billion, and makes it the biggest corporate bond synidcation in history. The breakdown:
- $1B 3Y FRN LAUNCH AT 3ML + 5 BPS
- $1.5B 3Y FIXED NOTES LAUNCH AT + 20 BPS
- $2B 5Y FRN LAUNCH AT 3ML+25 BPS
- $4B 5Y FIXED NOTES LAUNCH AT + 40 BPS
- $5.5B 10Y FIXED NOTES LAUNCH AT +75 BPS
- $3B 30Y DEBT LAUNCHES AT +100 BPS
30 Year paper in a tech company whose market cap has fluctuated by roughly $500 billion in the past year, and yielding just under 4%?
Sold to you.
I wonder how many people reading this recognize the danger. Entire states, counties and cities are investing in Apple stock to meet the outgo requirements of their pension plans……..for those workers already retired. Apple has been having some sharp contractions lately, when you have no products beyond phones and iPads and computers, when too many people start to cash in to get their money, the true value soon rears it’s ugly head. The value is far less than what they are selling. Other companies are already beating Apple out with phones; it will only be a matter of time before the truth comes out.
People don’t seem to realize stock is merely debt, not value.
All they do is sell debt. People who bought in 15 years ago will do okay, but the people buying now are chasing moonbeams.