Summary
Microsoft Corporation (MSFT) filed a Form 8-K on September 27, 2010, to announce the issuance and sale of a significant amount of senior unsecured notes. The company entered into an Underwriting Agreement on September 22, 2010, for the sale of four series of notes totaling $5.25 billion in aggregate principal amount. These notes include 0.875% Notes due 2013, 1.625% Notes due 2015, 3.000% Notes due 2020, and 4.500% Notes due 2040. This debt issuance signifies Microsoft's strategy to raise capital for general corporate purposes, potentially including investments, acquisitions, or share repurchases, without diluting equity. The notes are the company's senior unsecured obligations, ranking equally with existing unsecured and unsubordinated debt. The filing provides details on the interest rates, maturity dates, and terms of these new debt instruments, offering transparency to investors regarding the company's financing activities and capital structure.
Key Highlights
- 1Microsoft Corporation is issuing and selling senior unsecured notes with an aggregate principal amount of $5.25 billion.
- 2The issuance comprises four series of notes with varying interest rates and maturity dates: 0.875% (2013), 1.625% (2015), 3.000% (2020), and 4.500% (2040).
- 3The Underwriting Agreement was entered into on September 22, 2010, with several prominent investment banks acting as representatives.
- 4The notes will be issued pursuant to an indenture, as supplemented by a Second Supplemental Indenture dated September 27, 2010.
- 5These notes rank as senior unsecured obligations of Microsoft, on par with other existing unsecured and unsubordinated debt.
- 6The proceeds from this debt offering are intended for general corporate purposes.
- 7The filing includes forms of the underwriting agreement and supplemental indenture, along with legal opinions.