Summary
Microsoft Corporation (MSFT) announced on February 3, 2011, the issuance and sale of $2.25 billion in aggregate principal amount of senior unsecured notes across three tranches: $750 million of 2.500% Notes due 2016, $500 million of 4.000% Notes due 2021, and $1 billion of 5.300% Notes due 2041. The offering was conducted under an Underwriting Agreement with several major financial institutions acting as representatives. These notes are senior unsecured obligations of the company and rank equally with other outstanding unsecured and unsubordinated debt. The proceeds from this significant debt issuance are intended to bolster Microsoft's financial flexibility. The company has filed a related Prospectus Supplement dated February 3, 2011, to provide details on the offering. Interest payments are scheduled semi-annually, and the notes have distinct maturity dates in 2016, 2021, and 2041. This move reflects Microsoft's strategy to manage its capital structure and fund its ongoing operations and strategic initiatives.
Key Highlights
- 1Microsoft issued $2.25 billion in senior unsecured notes across three maturities.
- 2The notes include $750 million of 2.500% Notes due 2016.
- 3The offering also includes $500 million of 4.000% Notes due 2021.
- 4An additional $1 billion of 5.300% Notes due 2041 were issued.
- 5The notes are the company's senior unsecured obligations, ranking equally with other unsecured debt.
- 6Proceeds are intended to enhance financial flexibility.
- 7Interest payments are semi-annual, with the first payment due August 8, 2011.