Microsoft prices $1.15B convertible debt sale

June 9, 2010

(AP) -- Microsoft Corp. has priced its $1.15 billion convertible debt offering to institutional investors, and said it will use the proceeds to pay down short-term debt.

The said the zero coupon senior notes due 2013 won't pay interest but can be converted into cash, Microsoft , or a combination thereof.

Every $1,000 worth of notes can be converted into 29.9434 Microsoft common shares. The initial conversion price totals $33.40 per share, which marks a 33 percent premium to the stock's Tuesday closing price. To prevent share dilution once the stock is converted, Microsoft has set up capped call transactions that would make the company automatically purchase shares when the stock closes at or above $37.16.

Microsoft also granted investors a 13-day option to buy another $100 million in convertible notes to cover excess demand.
The sale is expected to close on Monday.

Microsoft shares fell 32 cents to close at $24.79.

Explore further: Google's winning streak woos investors (Update)

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.

Icahn pares Yahoo stake with sale of 12.7M shares

August 31, 2009

(AP) -- Financier Carl Icahn, one of Yahoo Inc.'s largest stockholders, has sold 12.7 million shares to whittle his holdings in the slumping Internet company down a percentage point to a 4.5 percent stake.

Recommended for you

Sydney makes its mark with electronic paper traffic signs

July 28, 2015

Visionect, which is in the business of helping companies build electronic paper display products, announced that Sydney has launched e-paper traffic signs. The traffic signage integrates displays from US manufacturer E Ink ...

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.