Microsoft to Raise $2.7 Billion With Debt Offering

Microsoft (NASDAQ: MSFT  ) will issue $715 million in unsecured senior notes in a euro offering (550 million euros) and another $1.95 billion in unsecured senior debt via a domestic offering, the company recently announced.

The debt offering consists of four tranches, including the $715 million euro offering, which comes due May 2, 2033 and pays 2.625%. The first of three U.S. debt issues is for $450 million and pays investors 1%, maturing May 1, 2018. The second domestic offering is for $1 billion in senior notes yielding 2.375% and comes due May 1, 2023, followed by the final U.S. senior note issuance of $500 million yielding 3.75%, maturing May 1, 2043.

Microsoft expects the offerings to close on May 2, 2013 with the proceeds used for "general corporate purposes," which may include "funding for working capital, capital expenditures, repurchases of capital stock, acquisitions and repayment of existing debt," according to the announcement.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2389601, ~/Articles/ArticleHandler.aspx, 9/18/2014 6:01:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement