“Apple will sell an unspecified amount of debt as it returns $55 billion in cash to equity investors in a push to compensate for a share price that’s been hammered by signs of slower growth,” Robinson reports. “Standard & Poor’s gave the company its AA+ grade, the second-highest level of investment grade, and Moody’s Investors Service ranked Apple an equivalent Aa1, according to statements issued by the ratings firms.”
Robinson reports, “Apple may be lifted to Moody’s top Aaa grade if changes in U.S. corporate tax laws allow the company to repatriate cash held overseas on a more tax-efficient basis, reducing the need to borrow, wrote Gerald Granovsky, a senior vice president in that ratings firm’s corporate finance group… Apple could potentially sell $21.3 billion of debt and still have the average debt-to-equity ratio of a top-rated company, Bloomberg data show.”
Read more in the full article here.
Related articles:
Apple beats Street on EPS and revenue; ups quarterly dividend by 15%; ups buybacks to $60 billion – April 23, 2013
Apple paid $6 billion in U.S. federal income taxes, 1/40th of all corporate income taxes collected by U.S. government in 2012 – January 5, 2013
Google, Apple, eBay shouldn’t pay taxes – people should pay taxes – November 25, 2012
So how much did Apple really pay in taxes? – November 1, 2012
Apple’s showdown with the U.S. government over taxes on offshore cash – July 13, 2012
Apple‘s $74 billion tops list of U.S. tech companies’ overseas cash – July 9, 2012
Apple’s dividend move puts spotlight on foreign cash holdings, repatriation tax reform – March 20, 2012
Apple: Good start; and what about the overseas cash? – March 19, 2012
Apple’s foreign cash hoard piles up: $54 billion and rapidly growing – January 11, 2012
Senator John McCain eyes Apple’s $54 billion overseas cash pile – November 3, 2011
Google joins Apple in push for U.S. repatriation tax holiday – October 3, 2011
Apple lobbies Obama for tax holiday, wants to bring overseas bounty home – August 24, 2011
U.S Senate Democrat Schumer allies with Apple, other multinationals on repatriation tax talks – June 21, 2011
U.S. companies push for tax break on foreign cash – June 20, 2011
Apple, Oracle, Duke Energy, others organize lobbying blitz for tax holiday – February 17, 2011
Tagged: AAPL, Apple buybacks, Apple debt, Apple dividend, Apple shareholders, corporate tax, debt-free, tax holiday, tax repatriation, U.S. taxes
