Apple Inc. is preparing to borrow in bonds after its first quarter balance sheet.
The issuance is planned to be in five tranches, according to knowledgeable sources who spoke to Bloomberg. Sources said the longest-term tranche, the 30-year bond, could yield 135 basis points over comparable Treasuries.
It is considered that the proceeds from the issuance will be used for general corporate purposes. It said this could include share buybacks, dividend payments, working capital, capital expenditures, acquisitions and repayments.
According to the survey conducted by Bloomberg, US high-quality corporate bond issuances of $30 billion to $35 billion are expected next week. Issuers are considered to have the potential to hit double digits on Monday.
Apple’s issuance will be the first after its $5.5 billion issue in August to fund stock repurchases and dividends.