Summary
Microsoft Corporation (MSFT) has announced actions taken by its Board of Directors and management to enhance its financial flexibility. On September 19, 2008, the Board authorized debt financings up to $6.0 billion. Following this authorization, Microsoft established a commercial paper program on September 22, 2008, allowing for up to $2.0 billion in short-term debt issuance. These notes will be senior unsecured obligations and are intended to fund general corporate purposes, including working capital and potential stock repurchases. In conjunction with the commercial paper program, Microsoft also secured a $2.0 billion senior unsecured revolving credit facility, maturing on March 22, 2009. This facility is designed to support the commercial paper program and also serve general corporate needs. These actions demonstrate Microsoft's proactive approach to managing its liquidity and capital structure.
Key Highlights
- 1Microsoft's Board authorized up to $6.0 billion in debt financings on September 19, 2008.
- 2A commercial paper program of up to $2.0 billion was established on September 22, 2008.
- 3The commercial paper notes are senior unsecured obligations.
- 4Proceeds from commercial paper are intended for general corporate purposes, including working capital and stock repurchases.
- 5A $2.0 billion senior unsecured revolving credit facility was entered into on September 22, 2008.
- 6The credit facility matures on March 22, 2009.
- 7The credit facility will support the commercial paper program and general corporate purposes.