Tag Archives: bonds

How does Apple’s issuance of bonds and buyback of its own stock impact its accounting equation?

In May 2017, Apple Inc., filed a prospectus with the SEC, indicating that it would be issuing another $7 billion in bonds during 2017. (Apple issued $10 billion in bonds in February 2017 in the US and $1 billion in Taiwan.) With the bond proceeds, Apple will be buying back its own stock. Apple has […]

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How would an investor classify an Anheuser-Busch 5 year, 2.65% bond it intends to hold to maturity?

With over 200 beer brands, Anheuser-Busch InBev is the largest beer company in the world (source: Wikipedia.) Its brands include Budweiser, Labatt Blue, Rolling Rock, and Michelob. Anheuser-Busch is in the process of buying SABMiller.  Its purchase of SABMiller will add several beer brands to the Anheuser-Busch portfolio, including Coors and Miller. To finance its […]

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How does a convertible bond issued by Fiat Chrysler Automobile affect the company’s balance sheet?

Fiat Chrysler Automobiles (FCA) launched a $2.5 billion convertible bond issue in December 2014.  FCA will be using the funds generated from the bond issue to help to turn its Jeep, Maserati, and Alfa Romeo brands into global brands, competing directly against Volkswagen and BMW in the premium car market. The bond issue will mature […]

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