By Aleesia Forni
Virginia Beach, Dec. 3 - Microsoft Corp. sold a $3.25 billion issue of senior notes (Aaa/AAA/AA+) in three tranches on Tuesday, according to a market source.
The deal included $1.25 billion of 1.625% five-year notes sold with a spread of Treasuries plus 35 basis points, or 99.423 to yield 1.746%.
There was also $1.5 billion of 3.625% notes due 2023 priced at Treasuries plus 90 bps. The notes sold at 99.508 to yield 3.684%.
A $500 million tranche of 4.875% 30-year bonds priced with a spread of 105 bps over Treasuries, or 99.654 to yield 4.897%.
All three tranches were sold at the tight end of talk.
Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds from the sale will be used for general corporate purposes, which may include funding for working capital, capital expenditures, repurchases of capital stock, acquisitions and repayment of existing debt.
The software, services and hardware developer and marketer is based in Redmond, Wash.
Issuer: | Microsoft Corp.
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Issue: | Senior notes
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Amount: | $3.25 billion
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Joint bookrunners: | Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
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Trade date: | Dec. 3
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Settlement date: | Dec. 6
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Ratings: | Moody's: Aaa
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| Standard & Poor's: AAA
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| Fitch: AA+
|
|
Notes due 2018
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Amount: | $1.25 billion
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Maturity: | Dec. 6, 2018
|
Coupon: | 1.625%
|
Price: | 99.423
|
Yield: | 1.746%
|
Spread: | Treasuries plus 35 bps
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Price guidance: | Treasuries plus 40 bps area
|
|
Notes due 2023
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Amount: | $1.5 billion
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Maturity: | Dec. 15, 2023
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Coupon: | 3.625%
|
Price: | 99.508
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Yield: | 3.684%
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Spread: | Treasuries plus 90 bps
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Price guidance: | Treasuries plus 95 bps area
|
|
Notes due 2043
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Amount: | $500 million
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Maturity: | 2043
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Coupon: | 4.875%
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Price: | 99.654
|
Yield: | 4.897%
|
Spread: | Treasuries plus 105 bps
|
Price guidance: | Treasuries plus 110 bps area
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