Deals
Microsoft Sells $17 Billion in Second Bond Deal in Six Months
- Tech giant will use proceeds to refinance short-term debt
- Credit graders maintain AAA rating on Microsoft debt
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Microsoft Corp. found ample demand for its $17 billion bond offering, allowing it to cut borrowing rates on its second multibillion note offering in six months.
The tech giant received at least twice as many orders as it had bonds to sell, according to people familiar with the matter, who asked not to be named because the deal is private. The longest portion of the offering, which generally refinanced debt maturing soon, was a $2 billion, 40-year bond with a 4.5 percent coupon that yields 1.4 percentage points above Treasuries, according to data compiled by Bloomberg. That’s down from initial discussions of about 1.55 percentage points.