Apple is selling more debt.
On Monday morning Apple disclosed in a filing with the SEC that it’s preparing to sell $US5 billion in new debt to cover “general corporate purposes.”
The debt is expected to cover stock repurchases and dividend payments, among other things.
Apple’s offering, which may price on Monday, is expected to be issued in some combination of floating-rate five-year notes and fixed-rate notes with durations ranging from 7 to 30 years.
Goldman Sachs and Deutsche Bank are managing the offering.
The offering comes after Apple’s latest earnings report revealed the company has $US178 billion in cash sitting on its balance sheet.
Apple’s latest offering also comes amid new record lows for interest rates around the world, with 7 European markets — Germany, Switzerland, Denmark, Sweden, the Netherlands, Austria, and Finland — now featuring five-year debt that is in negative territory.
US yields are also near multi-year lows, with the 30-year bond at a record low and the 10-year yield closing in on its low of 1.38% hit in 2012.
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