Hogan Lovells and Simpson Thacher bite into record $17bn Apple bond

Hogan Lovells and Simpson Thacher & Bartlett have advised on Apple’s $17bn (£10.9bn) bond issue, described as the largest corporate bond offering in history.


Stuart Stein
Stuart Stein

Hogan Lovells Washington DC corporate partners Stuart Stein, Eve Howard and Gregory Parisi are acting for Apple, according to its Securities and Exchange Commission filing on Monday (29 April).

Underwriters Goldman Sachs and Deutsche Bank were advised by a Palo Alto team at Simpson Thacher, according to a preliminary prospectus supplement filed yesterday (30 May). The US firm’s team included corporate partners Kevin Kennedy and Daniel Webb and associates Ryan Coombs, Kelli Schultz and Brian Osimiri.

Monday’s filing does not state Apple’s legal fees and expenses, which it says will be detailed in a later prospectus supplement.

The offering comes a week after Apple announced its first year-on-year net income drop in ten years. The deal is seen as a move to benefit from low interest rates to fund a return of $100bn (£64bn) to shareholders by the end of 2015. The company previously had no debt.

Background to this deal:

The deal tops Abbott Laboratories’ $14.7bn bond issue in 2012, which Reuters has referred to as the largest non-bank bond offering in history before Tuesday’s Apple sale. Abbott’s issuance came amid its split-up into Abbott and AbbVie, with Wall Street firm Wachtell Lipton Rosen & Katz advising Abbott on the spin-off.

In the UK, Apple has frequently turned to Freshfields Bruckhaus Deringer, including on its dispute with Samsung over the rival’s Galaxy tablet (10 July 2012).