Microsoft to raise $3.75B in first debt offering

May 12, 2009

(AP) -- Microsoft Corp. priced a $3.75 billion debt offering on Monday, a first for the world's largest software maker.

Microsoft said in a filing that it is offering five, 10 and 30-year senior unsecured notes. In a press release, the company said it will sell $2 billion of 2.95 percent notes due June 1, 2014; $1 billion of 4.20 percent notes due June 1, 2019 and $750 million of 5.20 percent notes due June 1, 2039.

The said it will use proceeds from the sale for general corporate purposes, including possible and stock buybacks.

Last September, Microsoft's board authorized it to take on up to $6 billion in debt. Standard & Poor's Rating Services gave Microsoft an "AAA" corporate credit rating.

The authorization came just before interest rates soared. Microsoft, which is sitting on more than $25 billion in cash, could afford to wait until rates came down to make a move.

Corporate offerings dropped off last fall but picked up again in January. Microsoft's issue comes on the heels of offerings by Whirlpool Corp., Nokia Inc. and Starwood Hotels & Resorts Worldwide Inc.

J.P. Morgan Securities Inc. is the lead underwriter on the sale. The offering is expected to close May 18.

Shares of slipped 10 cents to close earlier at $19.32.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Apple closes acquisition of Beats music

add to favorites email to friend print save as pdf

Related Stories

Microsoft feels more recession fallout, sales drop

Apr 23, 2009

(AP) -- Microsoft Corp. said Thursday its quarterly revenue fell from the previous year for the first time in its 23-year history as a public company, and its profit fell more sharply than Wall Street was ...

Microsoft Refuses to Reveal Current Vista Sales

Apr 27, 2007

Microsoft on Thursday reported a 65 percent jump in third quarter profits, buoyed by sales of its latest operating system, Vista. Exactly how many Microsoft has sold, however, is still a mystery.

Philips intends to sell LG.Philips LCD shares

Jul 08, 2005

LG.Philips LCD Co., Ltd., in which Royal Philips Electronics holds approximately 44.6 percent, last night announced that it has filed a Registration Statement with the U.S. Securities and Exchange Commission for a follow-on ...

Recommended for you

Microsoft sues Samsung alleging contract breach

38 minutes ago

Microsoft on Friday sued Samsung in federal court claiming the South Korean giant had breached a contract over cross-license technology used in the fiercely competitive smartphone market.

Apple closes acquisition of Beats music

7 hours ago

Apple said Friday it closed its $3 billion deal for Beats, the high-end audio equipment and streaming music service, a tie-up that could allow the iPhone maker to reach new audiences.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

rwinners
not rated yet May 13, 2009
This make absolutely no sense. MS has more cash than god and no long term debt. Is MS doing the banking system a favor???