What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to publicly announce and report on the pricing of Microsoft's private offering of zero coupon convertible senior notes due 2013.

Who is the target audience for this offering?

This offering is a private placement, meaning it is not available to the general public. It is typically targeted towards sophisticated institutional investors who meet specific eligibility requirements.

What does 'zero coupon convertible senior notes' mean for an investor?

'Zero coupon' means the notes do not pay periodic interest. Investors would typically purchase these notes at a discount to their face value, and their return would come from this discount and/or the appreciation in the value of the underlying stock if they convert the notes. 'Convertible' means the noteholders have the option to convert their notes into a predetermined number of Microsoft's common shares before the maturity date (2013), providing potential upside if MSFT's stock price increases.

Where can I find more specific details about the offering, such as the coupon rate (if applicable at a discount) and conversion price?

More specific details about the offering, including the pricing, discount, and conversion terms, can be found in the press release dated June 8, 2010, which is attached as Exhibit 99.1 to this Form 8-K filing.

MSFT 8-K SEC Disclosure

Summary

Microsoft Corporation (MSFT) filed an 8-K on June 9, 2010, primarily to report the pricing of a private offering of zero coupon convertible senior notes due 2013. This event, announced via a press release on June 8, 2010, signifies the company's intention to raise capital through debt instruments that carry the potential for conversion into equity. Investors should note that this offering is a private placement, meaning it is not being offered to the general public and is likely targeted towards institutional investors. The convertible nature of the notes suggests a strategic move by Microsoft to access funding while also providing an upside potential for noteholders if the company's stock price appreciates significantly before the 2013 maturity date. Details regarding the specific pricing, interest rate (or lack thereof given zero coupon), and conversion terms would be found in the referenced press release (Exhibit 99.1).

Key Highlights

1Microsoft announced the pricing of a private offering of zero coupon convertible senior notes due 2013.
2The announcement was made via a press release on June 8, 2010.
3This filing is classified under Item 8.01 (Other Events) and Item 9.01 (Financial Statements and Exhibits).
4The offering is a private placement, not a public offering.
5The notes are convertible, offering potential equity upside for investors.
6The zero coupon nature means no periodic interest payments; the return comes from the discount to face value and potential conversion.
7Exhibit 99.1 contains the press release detailing the offering.

MICROSOFT CORP 8-K Report, Corporate Update (Jun 9, 2010)

Summary

Key Highlights

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