Microsoft to Raise $2.7 Billion With Debt Offering
Microsoft 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.
The article Microsoft to Raise $2.7 Billion With Debt Offering originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool owns shares of Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.