Apple Inc. Pays $23.9 to Underwriters at Goldman Sachs, Deutsche Bank, etc
Apple Inc. paid $15.3 million worth of divided commissions to underwriters from Goldman Sachs Group Inc. The amount is based on estimation if division will be proportion to the firms' overall contribution.
Goldman Sachs Group Inc. underwrote 64 per cent of Apples Inc.'s sale per the regulatory filing obtained by Bloomberg.
However shares from the agency were decreased from 72 per cent in April 2013. Around that time, Goldman Sachs amassed a grand total of $38.3 million in fees.
Deutsche Bank's underwriters' fee was increased on the other hand, from 1.75 per cent in April 2013. Underwriters from the bank will be receiving an estimated $4.8 million if fees are to be divided proportionately.
Both Goldman Sachs Group Inc. and Deutsche Bank did a record-setting offering in 2013.
Apple Inc. kept its roster of underwriters with Wells Fargo as an addition and dropping Standard Chartered Plc. Other banks were JPMorgan Chase & Co., Bank of America Corp. , Barclays Plc and Citigroup Inc.
In total, the company paid $23.9 million in fees to underwriters in preparation for its $12 billion bond offering for this week. The fee makes up 0.199 per cent of funds obtained as compared to 0.313 per cent obtained from the $17 billion offering in 2013.
According to Bloomberg, the total fees paid by Apple Inc. was only half the average of the 0.461 per cent of what the company paid for investments in US corporate bonds which excluded deals made directly with Apple Inc.
The fees paid for is in lieu of the $12 billion bond offering by which Goldman Sachs and Deutsche Bank managed, according to Bloomberg's resource person (name withheld).
Parts of Apple's 12 billion bonds will go to dividend payments.
Other data from Bloomberg saw that the company had already issued $2 billion of 2.1 percent, five-year securities at a relative yield of 37.5 basis points - losing 50 basis points from what was initially targeted.
Moody's Investors Service is expected to rate the bonds Aa1.
According to further data from Bloomberg, Apple had also sold:
- $1.5 billion of 1.05 percent, three-year debentures to yield 18 basis points more than benchmarks.
- $3 billion of 2.85 percent, seven-year notes at 60 basis points. The $1 billion of 4.45 percent, 30-year bonds paid 100 basis points, down from a range of 115 to 120.