16 Years After Freeing Itself From Debt, Apple Now Owes Over $100 Billion
Back in the late '90s, when Apple (NASDAQ: AAPL) was flirting with bankruptcy, the Mac maker had accumulated a considerable debt load as part of its efforts to stay afloat. Things had gotten so dire that credit rating agencies had downgraded Apple's paper to junk status, and outstanding debt reached $954 million in fiscal 1998. Near the end of that fiscal year, Apple would release the first iMac, marking the beginning of its turnaround.
By the end of fiscal 1999, Apple had just $300 million of debt left -- unsecured notes initially issued in 1994 with a 6.5% coupon -- that was set to mature in February 2004. Over the next five years, Apple's turnaround gained momentum as the company proceeded to release the revolutionary iPod in 2001.
Image source: Apple.
Source Fool.com
