Microsoft (MSFT) has finished selling $8B worth of debt in a massive dual-currency offering. In addition to selling €3.5B worth of euro-denominated bonds, the software giant has sold $3.25B worth of dollar-denominated debt.
Unsurprisingly, the yields for the dollar-denominated notes are also quite low. $1.25B worth of 5-year bonds carry an interest rate spread of just 35 bps relative to comparable Treasurys; $1.5B worth of 10-year bonds have a 90 bps spread, and $500M worth of 30-year bonds have a 105 bps spread.
Microsoft isn't saying much about what it plans to do with the proceeds, but buybacks are a good bet. In addition to boosting EPS, eliminating shares via buybacks removes the dividend payments (current yield of 2.9%) attached to them.