Apple Raises $17 Billion in Record Debt Sale

Kun-Mao Chao (趙坤茂 )Department of Computer Science and

Information EngineeringNational Taiwan University, Taiwan

A note given in BCC class on May 1, 2013

Steve Jobs

2Source: Wikepedia

Timothy Cook

3Source: The New York Times 4/30/2013

Why?

• With a $145 billion cash hoard, Apple could acquire Facebook, Hewlett-Packard and Yahoo — and still have more than $10 billion left over.

• In a record bond deal, the company raised $17 billion on Tuesday.

• Why would a company with so much cash even bother to issue debt?

4Source: The New York Times 4/30/2013

Some of the reasons

• to exploit historically low interest rates and strong investor demand for bonds

• to help finance a $100 billion payout to its shareholders

• to avoid a potentially big tax hit

5Source: The New York Times 4/30/2013

The Dow Jones Industrial Average

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The Dow Jones Industrial Average

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The Dow Jones Industrial Average

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