Microsoft Announces Debt Offerings

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Microsoft Corp. on Tuesday announced the pricing of its offerings of €3.5 billion of senior unsecured notes and $3.25 billion of senior unsecured notes. The notes consist of the following tranches:

  • €1.75 billion of 2.125 percent notes due Dec. 6, 2021
  • €1.75 billion of 3.125 percent notes due Dec. 6, 2028
  • $1.25 billion of 1.625 percent notes due Dec. 6, 2018
  • $1.50 billion of 3.625 percent notes due Dec. 15, 2023
  • $500 million of 4.875 percent notes due Dec. 15, 2043

Microsoft intends to use the net proceeds from the offerings for general corporate purposes, which may include, among other things, funding for working capital, capital expenditures, repurchases of capital stock, acquisitions and repayment of existing debt. The offerings are expected to close on Dec. 6, 2013.
 
Get it while it's cheap. Can't say I blame them. QE will slow sooner or later, and rates are going to rise accordingly.
 
Az Syndicate said:
It must be nice to borrow 1.75 billion at 2.125 interest.... Smart fiscal move by MS.
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No kidding. My mortgage is almost double that rate (loan amount is substantially less than 1.75B), and a car note is barely less
 
Wasn't that long ago when 6% money on a mortgage was considered grrrrr-r-r-r-r-reat!....;)
 
Az Syndicate said:
It must be nice to borrow 1.75 billion at 2.125 interest.... Smart fiscal move by MS.
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Well, they had $4B in cash on their balance sheet as of 9/30, their debt/assets ratio is 10% and they are AAA rated by the ratings agencies.

Lower risk= lower rate. I'd say that's about as safe a company to lend money to as you can find.
 
WaltC said:
Wasn't that long ago when 6% money on a mortgage was considered grrrrr-r-r-r-r-reat!....;)
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And that's the truth. I just purchased a house in July, and am financed for 30 years at 4%. I missed the 3's, but am very happy with a rate that is lower than what I paid for my first new car.......
 
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