“Net cash neutral means that total cash = total debt.” — CEO Tim Cook
From MarketWatch's "Apple sees blizzard of demand for $14 billion debt deal" posted Monday evening:
Apple Inc. attracted more than $33 billion worth of orders for its new $14 billion debt deal on Monday, underscoring the continued scramble for all things tied to the smartphone and computer giant.
Initially, the class was pitched to investors at a spread of about 105 basis points above Treasurys, but narrowed throughout the day. Last week, similar bonds sold by convenience store chain 7-Eleven Inc. SVNDF, -2.07% priced at the higher 105-basis-point level over Treasurys, according to BofA Global data.
Lower spreads often point to high demand for an asset or a risk-on market tone, since spreads are the premium that investors are paid on bonds above a risk-free benchmark to compensate for credit risks.
Its debt deal followed on the heels of Apple posting its highest quarterly revenue ever last week, with the new iPhone 12 helping power the company to its first $100-billion quarter in sales.
My take: Net cash neutrality ain't easy to reach when free cash flows so freely.