Apple Inc. withdrew. orders worth more than $ 33 billion for the new $ 14 billion debt deal on Monday, highlighting the ongoing scramble for everything connected to the smartphone and computer giant.
The six-tranche Apple AAPL,
a debt contract consisting mainly of Aa1 and AA + rated bonds that mature in five to 40 years. The largest $ 3 billion snail of 30-year-old debt was cleared at a spread of 82 basis points above Treasurys TMUBMUSD30Y,
according to price details seen by MarketWatch.
Initially, the class was sent to investors at a spread of about 105 base points above Treasurys, but they kept down throughout the day. Last week, similar bonds were sold by a supply chain 7-Eleven Inc.. SVNDF,
price at the 105-point higher level over Treasurys, according to BofA Global data.
Lower spreads often indicate high demand for a risky asset or market tone, as spreads are the primary price that investors pay on bonds above a risk-free criterion to compensate for credit risks.
Apple’s contract also marked the largest U.S.-level corporate bond issued to date in 2021, surpassing a nearly $ 11 bond offer at 7-Eleven last week, which according to one bond investor.
Apple did not respond to a request for comment.
Its debt deal on the heels of Apple continued to post its highest-ever quarterly earnings last week, with the new iPhone 12 helping to power the company to the first a $ 100-billion quarter of them in sales.
He and other tech giants have taken their stock prices and valuations to new heights during the pandemic, which nearly closed a year ago stores, restaurants, schools and businesses across the country began as rates began. COVID-19 infection is on the rise.
Sales of streaming devices, memberships and services that allow people to stay connected to work, school, family and outdoor entertainment have risen in the past year, despite the economic and public health tax in the country. space.
IPhone sales grew 17% from the same quarter a year ago, while iPad and Mac sales grew 41% and 21%, respectively, “reflecting the continuing role that these devices play in life our customers during the COVID-19 pandemic, ”said Chief Tim Cook during last week’s employment call.
Read: GameStop stock pulls back from top gains after more than half of short positions have been eliminated
Apple’s new set of bonds were denominated in U.S. dollars, which the company noted to some extent could be used to repurchase stock and fund share payments, in its forecast.
Apple announced last week that it recently returned more than $ 30 billion to shareholders, bringing in $ 3.6 billion in shares and the equivalent of $ 24 billion through repurchases. 200 million Apple shares.
Goldman Sachs, JP Morgan Securities and Morgan Stanley are confirming its new debt offer.
Shares of Apple closed at $ 134.41 on Monday, or up 1.7%, while the S&P 500 SPX index,
1.6% improvement and the Dow Jones industrial average DJIA,
0.8% added.
A rally in U.S. stocks on Monday helped rations recover some lost ground that was sparked last week by a group of individual investors using online forums like Reddit to fight back. professional short sellers and hedge funds to control the management of sections of Corp GameStop. GME,
film theater chain AMC Entertainment Holdings Inc.
AMC,
and shaving of other small companies.