Published on 8/1/2016 in the Prospect News Investment Grade Daily.
New Issue: Microsoft prices $19.75 billion of notes in seven tranches
By Cristal Cody
Eureka Springs, Ark., Aug. 1 – Microsoft Corp. priced $19.75 billion of senior notes (Aaa/AAA) in seven parts on Monday, according to a company news release.
The company sold $2.5 billion of 1.1% three-year notes and $2.75 billion of 1.55% five-year notes.
The company brought $1.5 billion of 2% seven-year notes, $4 billion of 2.4% 10-year notes and $2.25 billion of 3.45% 20-year notes.
Microsoft printed $4.5 billion of 3.7% 30-year notes and $2.25 billion of 3.95% 40-year bonds.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, which may include acquisitions, including the previously announced acquisition of LinkedIn Corp., funding for working capital, capital expenditures, capital stock repurchases and debt repayment.
The computer software company is based in Redmond, Wash.
| Issuer: | Microsoft Corp.
|
| Amount: | $19.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Academy Securities Inc., Blaylock Beal Van LLC, CastleOak Securities LP, C.L. King & Associates Inc., CAVU Securities LLC, Drexel Hamilton LLC, Lebenthal & Co. LLC, Loop Capital Markets LLC, MFR Securities Inc., Mischler Financial Group Inc., Samuel A. Ramirez & Co. Inc., Siebert Brandford Shank & Co. LLC, Williams Capital Group LP
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 8
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Aug. 8, 2019
|
| Coupon: | 1.1%
|
|
|
| Five-year notes
|
| Amount: | $2.75 billion
|
| Maturity: | Aug. 8, 2021
|
| Coupon: | 1.55%
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 8, 2023
|
| Coupon: | 2%
|
|
|
| 10-year notes
|
| Amount: | $4 billion
|
| Maturity: | Aug. 8, 2026
|
| Coupon: | 2.4%
|
|
|
| 20-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Aug. 8, 2036
|
| Coupon: | 3.45%
|
|
|
| 30-year notes
|
| Amount: | $4.5 billion
|
| Maturity: | Aug. 8, 2046
|
| Coupon: | 3.7%
|
|
|
| 40-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | Aug. 8, 2056
|
| Coupon: | 3.95%
|
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