Goldman May Receive $38 Million Handling Record Apple Bond Sale

Apple Inc. (AAPL) paid $53.25 million in fees to underwriters led by Goldman Sachs Group Inc. and Deutsche Bank AG (DBK) for the iPhone maker’s $17 billion bond offering, the largest sale on record.

Goldman Sachs, which underwrote 72 percent of the sale according to a regulatory filing, would get $38.3 million if commissions are divided in proportion to firms’ involvement. The fees amount to 0.313 percent of the funds raised, below the average 0.483 percent paid on offerings of investment-grade U.S. corporate bonds, data compiled by Bloomberg show.

Apple’s six-part offering, intended to help finance a $100 billion capital reward for shareholders, was a rare opportunity for Wall Street firms to work with the Cupertino, California-based technology company, which hasn’t issued bonds for 17 years. The deal pushed New York-based Goldman Sachs to third place among underwriters of U.S. investment-grade debt, and Deutsche Bank to sixth, Bloomberg data show.

Deutsche Bank managed 17.5 percent of the offering, according to the filing yesterday by Apple. That would entitle the Frankfurt-based lender to about $9.3 million, if the fee pool is divided proportionally. Other banks in the April 30 deal were Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Barclays Plc (BARC) and Standard Chartered Plc (STAN), the filing shows.

Goldman Sachs made a record $694 million from debt underwriting in the first quarter of the year, which was 6.9 percent of the firm’s overall revenue in the period, according to figures posted on its website.

Deutsche Bank’s revenue from debt origination was 455 million euros ($600 million) in the first quarter, 4.8 percent of the group’s total, figures on its website show.

To contact the reporters on this story: Sarika Gangar in New York at sgangar@bloomberg.net; Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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