ABLE 14.2 Apple's debt issue Comment Description of Bond ISSUE: Apple Inc. 3.45% Notes 1. Interest of 3.45% will be payable on February 9 and August 9 of each year. Thus every 6 months each note will pay Interest of (.0345/2)x $1,000 $17.25. 2. Investors willl be repald the $1,000 face value In 2045 3. Moody's bond rating Is Aa, the second-highest-quality rating.RATING: Aa . A trustee Is appolnted to look after Investors' Interest DUE: February 9, 2045 TRUSTEE: Issued under an Indenture between Apple and The Bank of New York Mellon Trust Company REGISTERED: Issued In registered, book-entry form 5. The bonds are registered. The reglstrar keeps a record of who 6. The company is not obliged to repay any of the bonds on a 7. The company has the option to buy back the notes. The owns the bonds SINKING FUND: None regular basis before maturity CALLABLE: In whole or In part at any time redemption price Is the greater of $1,000 or a price that Is determined by the value of an equlvalent Treasury bond. 8. The notes are senlor debt, ranking equally with all Apple's SENIORITY other unsecured senlor debt. 9. The notes are not secured; that Is, no assets have been set SECURITY: The notes are unsecured. However, "If Apple shall Incur, assume or guarantee any Debt.t will securethe debt securitles then outstanding equally aside to protect the noteholders In the event of default. However, If Apple sets aside assets to protect any other bondholders, the notes will also be secured by these assets. and ratably with.such Debt. Thls Is termed a negative pledge clause 10. The principal amount of the Issue was $2 blilion. The notes OFFERED: $2,000,000,000 at 99.11% were sold at 99.11% of their principal value 11. The book runners are the managing underwriters to the Issue JOINT BOOK-RUNNING MANAGERS: Goldman, Sachs; Deutsche Bank Securitles and malntaln the book of securitles sold