On May 12, 2025, Apple Inc. successfully completed a significant debt issuance, adding \(4.5 billion in aggregate principal via four series of senior unsecured Notes. This strategic financial move included \)1.5 billion of 4.000% Notes due 2028, \(1 billion of 4.200% Notes due 2030, \)1 billion of 4.500% Notes due 2032, and $1 billion of 4.750% Notes maturing in 2035. These Notes were issued under the terms of an indenture dated November 1, 2024, with payments of interest set semi-annually on May 12 and November 12 each year.
This issuance strengthens Apple’s debt capital structure, which according to their FY 2024 financials, featured a total debt to capitalization ratio of approximately 65.53%, reflecting a leveraged position optimized to support its expansive market activities and R&D endeavors. Apple reported total liabilities of \(308 billion alongside an impressive \)391 billion in revenue for FY 2024, with an operating margin of 31.51%, underscoring operational efficiency despite elevated leverage.
Notably, in the fiscal quarter ending March 2025, Apple’s senior vice president and CFO Kevan Parekh highlighted that Apple held \(133 billion in cash and marketable securities, offset by \)98 billion in total debt, and a net cash position of \(35 billion. This debt issuance aligns with Apple's capital management strategy, including \)3 billion debt maturities and a \(4 billion increase in commercial paper, aimed at maintaining liquidity while facilitating shareholder returns. During this quarter, Apple returned \)29 billion to shareholders via \(3.8 billion in dividends and \)25 billion through share repurchases.
This move enhances Apple’s financial flexibility amid an environment typified by economic uncertainty and strategic investments in artificial intelligence and cloud infrastructure, critical for its hyperscaler and consumer technology leadership. The maturity stagger—from 2028 to 2035—reflects a deliberate approach to managing refinancing risk while supporting long-term capital expenditure and innovation.
In conclusion, Apple’s recent debt issuance showcases its robust capital management framework, reinforces market confidence, and positions the company effectively to navigate evolving market dynamics. This raise exemplifies Apple’s financial prudence and strategic foresight, maintaining its market leadership in the technology space.
For more detailed financing details, please visit the source document: https://sec.gov/Archives/edgar/data/320193/000114036125018400/ef20048691_8k.htm