Microsoft to offer $1.15B in convertible debt

June 8, 2010

(AP) -- Microsoft is planning to raise $1.15 billion by selling convertible debt to institutional investors. Proceeds will be used to repay debt.

The senior notes due 2013 can be converted into cash, or a combination of both. Microsoft also is offering an additional $100 million in senior notes if there's excess demand.

To prevent share dilution once the debt is converted into stock, the Redmond, Wash., company plans to use capped call transactions that would automatically buy shares if the stock hits a certain price or higher.

The interest rate Microsoft will pay to debt holders, as well as the notes' conversion rate and other terms, will be set by the software giant and investors in negotiations.

plans to buy back shares once terms of the note are settled.

Explore further: Microsoft bond issue sparks takeover rumors

0 shares

Related Stories

SolarWinds shares climb during first trading day

May 20, 2009

(AP) -- Shares of SolarWinds Inc. climbed Wednesday during the network management software maker's first day of trading, marking the latest flicker of life in an IPO market that has barely registered a pulse this year.

Ancestry.com hopes to raise $100 million in IPO

November 4, 2009

(AP) -- Genealogy Web site Ancestry.com hopes to raise about $100 million when it goes public this week. With more than a million paying subscribers, little competition, a small debt load and a record of increasing revenues, ...

Recommended for you

Team creates functional ultrathin solar cells

August 27, 2015

(Phys.org)—A team of researchers with Johannes Kepler University Linz in Austria has developed an ultrathin solar cell for use in lightweight and flexible applications. In their paper published in the journal Nature Materials, ...

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

Smart home heating and cooling

August 28, 2015

Smart temperature-control devices—such as thermostats that learn and adjust to pre-programmed temperatures—are poised to increase comfort and save energy in homes.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.