Microsoft Seeks $3.75B Cash Infusion

E-Commerce News: Wall Street: Microsoft Seeks $3.75B Cash Infusion From First-Ever Debt Offering

Microsoft (Nasdaq: MSFT) Save 50% on Microsoft Office for Mac 2008. Click here to learn more. More about Microsoft priced a US$3.75 billion debt offering on Monday, a first for the world's largest software maker.  Microsoft said in a Securities and Exchange Commission More about SEC filing that it is offering five-, 10- and 30-year senior unsecured notes.

In a press release, the company said it will sell $2 billion of 2.95 percent notes due June 1, 2014; $1 billion of 4.20 percent notes due June 1, 2019; and $750 million of 5.20 percent notes due June 1, 2039.  The software maker said it will use proceeds from the sale for general corporate purposes, including possible acquisitions and stock buybacks.

Authorized Before Rate Hike

Last September, Microsoft's board authorized it to take on up to $6 billion in debt. Standard & Poor's Rating Services gave Microsoft an "AAA" corporate credit rating.  The authorization came just before interest rates soared.  Microsoft, which is sitting on more than $25 billion in cash, could afford to wait until rates came down to make a move.

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