Apple To Raise Another $17B In Debt To Avoid Repatriating Foreign-Held Cash

Given low current interest rates on corporate paper, it is an order of magnitude cheaper for Apple to borrow billions at home than to bring billions home. And with the Fed prioritizing growth instead of fear of inflation, that’s not likely to change.

TechCrunch

As it looks to return more of its accumulated past-net profit margin — cash, and so forth — to investors, Apple will again turn to debt to raise the funds needed.

If that seems odd, keep in mind that most of Apple’s cash is held overseas, and to bring it home would incur a financial penalty equal to the full United States federal corporate tax rate: 35%. So, the company is looking to raise another $17 billion in debt to pay its shareholders a part of its profits.

Given low current interest rates on corporate paper, it is an order of magnitude cheaper for Apple to borrow billions at home than to bring billions home. And with the Fed prioritizing growth instead of fear of inflation, that’s not likely to change.

I’ve reached out to Apple for comment on the reported debt sale.

ZeroHedge published a graph today detailing why Apple needs to raise…

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