Microsoft Announces Debt Offerings

Discussion in 'HardForum Tech News' started by HardOCP News, Dec 4, 2013.

  1. HardOCP News

    HardOCP News [H] News

    Messages:
    0
    Joined:
    Dec 31, 1969
    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.
     
  2. jflail2

    jflail2 Gawd

    Messages:
    646
    Joined:
    Jun 1, 2005
    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.
     
  3. Az Syndicate

    Az Syndicate Limp Gawd

    Messages:
    395
    Joined:
    Feb 15, 2002
    It must be nice to borrow 1.75 billion at 2.125 interest.... Smart fiscal move by MS.
     
  4. J-Will

    J-Will [H]ard|Gawd

    Messages:
    1,723
    Joined:
    Jan 10, 2009
    No kidding. My mortgage is almost double that rate (loan amount is substantially less than 1.75B), and a car note is barely less
     
  5. WaltC

    WaltC [H]ard|Gawd

    Messages:
    1,106
    Joined:
    Mar 5, 2010
    Wasn't that long ago when 6% money on a mortgage was considered grrrrr-r-r-r-r-reat!....;)
     
  6. jflail2

    jflail2 Gawd

    Messages:
    646
    Joined:
    Jun 1, 2005
    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.
     
  7. Godmachine

    Godmachine [H]ardForum Junkie

    Messages:
    10,472
    Joined:
    Apr 7, 2003
    Considering the capital they have , no surprise. Its good to be the King.
     
  8. ///AMG

    ///AMG 2[H]4U

    Messages:
    3,142
    Joined:
    Sep 19, 2012
    Agreed.
     
  9. jflail2

    jflail2 Gawd

    Messages:
    646
    Joined:
    Jun 1, 2005
    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.......