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It looks like Microsoft (MSFT) will be raising close to $2.7B in its latest debt-financing...

It looks like Microsoft (MSFT) will be raising close to $2.7B in its latest debt-financing effort: the WSJ now reports Microsoft sold $1.95B in U.S. debt, as it shops a €550M ($715M) offering with a 20-year maturity in Europe. For the U.S. offering, Microsoft obtained a rate of just 1.01% on 5-year debt, a mere 70 bps spread over comparable Treasurys for 10-year bonds, and a 90 bps spread for 30-year bonds. The paper previously reported Microsoft was looking to raise $500M+ in the U.S to go with its European offering.
Comments (4)
  • wigit5
    , contributor
    Comments (4050) | Send Message
    25 Apr 2013, 06:55 PM Reply Like
  • davidshelton
    , contributor
    Comments (311) | Send Message
    If MSFT can't make more than 1.01% pa on that debt then they're doooomed!
    25 Apr 2013, 07:03 PM Reply Like
  • TheRabble
    , contributor
    Comments (87) | Send Message
    They could simply use that money to buy back shares and have a nice profit in 5 years. Even if the stock price goes nowhere, they'll be banking dividends at almost triple the loan interest.
    25 Apr 2013, 07:30 PM Reply Like
  • techy46
    , contributor
    Comments (5969) | Send Message
    Yep, same thing Apple figured out. It's like printing money - QE-MS.
    25 Apr 2013, 07:54 PM Reply Like
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