Microsoft to offer $1.15B in convertible debt

Jun 08, 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: Alibaba IPO comes with unusual structure

not rated yet
add to favorites email to friend print save as pdf

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

Nov 04, 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

Job listing service ZipRecruiter raises $63 million

2 hours ago

ZipRecruiter, a California start-up that tries to simplify tasks for recruiters, has raised $63 million in initial venture capital funding as the 4-year-old service races to keep up with growing demand.

Alibaba IPO comes with unusual structure

11 hours ago

Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant's U.S. public offering will need to get comfortable with an unusual business structure.

User comments : 0