Apple Bonds Climb Above Par After $12 Billion Securities Issue

Most of Apple Inc. (AAPL)’s new bonds climbed above face value after the iPhone maker yesterday issued $12 billion of debt, seeking to reward shareholders using a cheaper alternative than overseas cash that’s subject to repatriation taxes.

The company’s $2.5 billion of 3.45 percent, 10-year notes rose 0.4 cent from the issue price to 100.3 cents on the dollar for a yield of 3.41 percent, or 75 basis points more than similar-maturity Treasuries at 11:42 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Apple, based in Cupertino, California, also issued three-, five- and seven-year debentures, which all rose above 100 cents on the dollar. Its $1 billion of 4.45 percent, 30-year bonds fell 0.2 cent to 99.3 cents on the dollar.

Bonds of the world’s largest technology company by stock-market capitalization are the most actively traded among U.S. corporate securities by dealers today, accounting for 10.6 percent of trades over $1 million, according to Trace.

Shares rose 1 percent to $598.23, reaching the highest intraday level since November 2012.

To contact the reporter on this story: Caroline Chen in New York at cchen509@bloomberg.net

To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net John Parry, Mitchell Martin

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