Summary
Microsoft Corporation (MSFT) has filed an 8-K report detailing its entry into an Underwriting Agreement on May 11, 2009, to issue and sell a substantial aggregate principal amount of senior unsecured notes. The offering comprises $2.0 billion of 2.95% Notes due 2014, $1.0 billion of 4.20% Notes due 2019, and $750 million of 5.20% Notes due 2039, totaling $3.75 billion in debt financing. This significant debt issuance indicates Microsoft's strategy to raise capital, likely for general corporate purposes, potential acquisitions, or to strengthen its liquidity position amidst evolving market conditions in 2009. Investors should note that these notes are senior unsecured obligations, ranking equally with other existing unsecured and unsubordinated debt. The company has filed a Prospectus Supplement to facilitate this public offering, underscoring transparency and compliance with regulatory requirements.
Key Highlights
- 1Microsoft Corporation issued $3.75 billion in aggregate principal amount of senior unsecured notes through an Underwriting Agreement dated May 11, 2009.
- 2The notes are divided into three tranches: $2.0 billion of 2.95% Notes due 2014, $1.0 billion of 4.20% Notes due 2019, and $750 million of 5.20% Notes due 2039.
- 3The notes will rank equally with Microsoft's other unsecured and unsubordinated debt obligations.
- 4The issuance is governed by an indenture to be dated May 18, 2009, between Microsoft and The Bank of New York Mellon Trust Company, N.A. as Trustee.
- 5Interest payments on the notes will be made semi-annually on June 1 and December 1, commencing December 1, 2009.
- 6A Prospectus dated November 20, 2008, and a Prospectus Supplement dated May 11, 2009, have been filed with the SEC related to this offering.
- 7The filing includes various exhibits such as the Underwriting Agreement and forms of the Indenture and Global Notes.