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Apple's first bond offering in two years headlines busy primary

BY Reuters | CORPORATE | 05/05/25 11:20 AM EDT

By Shankar Ramakrishnan

May 5 (Reuters) - Apple (AAPL) on Monday announced a four-tranche bond offering, its first in two years, with proceeds expected to be used to repurchase stock, repay outstanding debt among other purposes, according to its SEC filing.

The size of the bond offering was not stated at launch but CreditSights analysts expect it to raise nearly $5 billion to $6 billion. The analysts said Apple (AAPL) has $8 billion in upcoming debt maturities from May through November.

Besides Apple (AAPL), there were eight other issuers in the investment-grade primary market to kick off a week that is expected to see nearly $35 billion of bond issuance.

The rise in new bond supply has come amidst a rebound in credit spreads, or the premium companies pay over Treasuries, in the weeks since President Donald Trump first announced harsh tariffs and then provided temporary relief.

The average investment-grade bond spread was at 106 basis points last Friday, the latest data, or three basis points inside levels touched last Thursday. (Reporting by Shankar Ramakrishnan; Editing by David Gregorio)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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