Microsoft prices $1.15B convertible debt sale

Jun 09, 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: Apple edges Samsung, retakes smartphone throne: survey

1 /5 (1 vote)
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.

Icahn pares Yahoo stake with sale of 12.7M shares

Aug 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

Visa, MasterCard moving into mobile pay in Africa

59 minutes ago

Americans may just be getting used to mobile pay, but consumers in many African countries have been paying with their phones for years. Now payment processors Visa and MasterCard want to get a slice of that market, and are ...

Venture capitalist testifies in Silicon Valley sex-bias suit

8 hours ago

A prominent Silicon Valley venture capitalist who helped direct early investments in Google and Amazon said Tuesday during testimony in a high-profile sex discrimination lawsuit that his firm is not run by men and has many ...

User comments : 0

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.