Apple Sells $575 Million in Convertible Debt: The junk bonds mature in 2001 and pay 6% interest, 0.62 percentage points less than benchmark five-year Treasury notes. The securities are convertible into Apple common stock at $29.205, or 18% more than Monday’s closing price. Some investors said the bonds, which will provide Apple Computer Inc. with working capital, are a good gamble because Chairman Gilbert Amelio’s $100-million cost-cutting plan will help return the company to profitability. In a separate announcement, the Cupertino, Calif., company said it will fire about 250 people from its Elk Grove, Calif., plant as part of its previously announced plan to eliminate 2,800 jobs.
Times Staff and Wire Reports