Microsoft returns to the U.S. bond market, planning to raise at least $25 billion

Microsoft announced it is returning to the U.S. bond market, planning to raise at least $25 billion through up to 10 tranches—its first return to the U.S. bond market since its $17 billion issuance in 2017. According to Bloomberg, its 40-year bonds were priced close to the long-term bonds of Alphabet and Amazon, even though Microsoft carries a higher AAA rating. CNBC Technology reported that Microsoft is using its S&P AAA rating to finance infrastructure expansion, with management setting a 2026 capital expenditure target of $170 billion; net proceeds will be used for general corporate purposes, potentially including working capital, capital expenditures, share repurchases, acquisitions and repayment of existing debt, with the offering expected to close on November 4. Follow-up reports said Microsoft has completed the $25 billion bond offering, with peak orders exceeding $115 billion and a subscription ratio of 4.6 times, across 10 bonds with maturities ranging from 2 to 40 years; however, its 30-year bond spread reached 95 basis points above the benchmark Treasury, wider than the 30-year bond issued the same week by lower-rated Procter & Gamble.

AI-generated from public reports

1. Oct 30· 1 reports

   Microsoft completes $25 billion bond issuance

   Source:Wallstreetcn
2. Oct 29· 2 reports

   Microsoft returns to the U.S. bond market, plans to raise at least $25 billion

   Source:CNBC Technology