BUSINESS
The bonds -- due in three years, five years, 10 years and 30 years -- are raising money for capital expenditures, share buybacks and acquisitions, among other things, Microsoft said in a filing with securities regulators.
Microsoft Corp on Wednesday sold $4.75 billion in new debt, some of it at the lowest US corporate borrowing rate on record, as the world's largest software company takes advantage of low interest rates to raise cash.
The bonds -- due in three years, five years, 10 years and 30 years -- are raising money for capital expenditures, share buybacks and acquisitions, among other things, Microsoft said in a filing with securities regulators.
Microsoft sold $1 billion of the three-year notes at a coupon of 0.875 percent, or 25 basis points over comparable Treasuries, according to a source familiar with the offering.
It means Microsoft is paying even less in interest than a government-insured savings account. The overnight average yield on a one-year certificate of deposit (CD) is 1.2%, according to Bankrate.com.
Blue-chip companies have swarmed to the high-grade corporate debt market this year, taking advantage of historically low funding levels.
But Microsoft struck the lowest coupon yet, beating the previous low mark of IBM's 1% coupon on an August offering. The next lowest, Hewlett-Packard and Procter & Gamble Co, sold three-year debt at 1.12% and 1.375% respectively this year, according to Thomson ReutersIFR data.
Microsoft also sold $1.75 billion of its five-year bond at 40 points above comparable treasuries, $1 billion of the 10-year at 55 points above and $1 billion of the 30-year at 83 points above, according to the source.
Microsoft, which has the highest credit ratings from Standard & Poor's and Moody's, has almost $37 billion of cash on its balance sheet, but as most of that cash is overseas it prefers to borrow money at cheap rates rather than pay taxes to repatriate cash.
The offering comes a day after the company's board granted permission to issue up to $6 billion of new debt.
On Tuesday, Microsoft raised its quarterly dividend by 23% to 16 cents per share, disappointing some investors who had looked for more.
Its shares closed down 2.1 percent to $24.61 on the Nasdaq.
What happens during Snow Moon and when does it appear? Check dates and when to see
‘RBI’s gold buying is...’: FM Nirmala Sitharaman talks about rising gold reserves by central bank
Meet the Muslim king all set to challenge Donald Trump over Gaza, he is from...
Ranveer Allahbadia’s viral joke on Samay Raina's India's Got Latent was stolen! The original was...
THIS Indian billionaire carries coffin of his employee, netizens call him ‘true leader’
Days after Jeet Adani-Diva Shah's marriage, Gautam Adani set to spend Rs 6000 crore on...
'Please let me stay the night:' Female trainee asked to leave Infosys premises at 6 pm even after...
Auto driver’s son studies at IIT, but luxury hotel refuses his auto's entry, billionaire calls it...
Who is Kuldeep Sharma? Ex-IPS gets three-month jail term in...
Meet woman, who lived in village, later got job at Amazon, now working in US as...
Beef Biryani Row Explained: Police file FIR day after incident at AMU; here's what happened
Meet Anant Ahuja, Sonam Kapoor's brother-in-law who reportedly got Rs 6.56 cr by USAID
BIG move by Mukesh Ambani, launches Rs 10 product with former cricket star, it is...
Car gets stuck in wheat field in the dead of night, know what Google Maps error caused later
The Chabahar Puzzle: India’s Connectivity Dreams in US-Iran Turmoil
Delhi: Girls showcase their skills, strength in netball, Aali and Lal Kuan emerge winners
Elon Musk reacts to UK MP’s demand to replace 'Bengali' signboard at London Station, check here
Anupam Mittal's unique gift to Gautam Adani's son Jeet Adani will leave you in splits
Man dies after being sexually assaulted in Delhi, one arrested, this is what happened
After Deepinder Goyal's Zomato, here is the list of Indian companies that recently rebranded
Life Insurance Quotes Explained: Guide to securing your family’s financial future
Winter Essentials: Must-have home appliances to keep you warm, cozy
'Ishq Na Kario' Releases: Abhishek Kumar takes his first step in cinema
Roadmap to building Rs 5 crore retirement corpus with NPS
Sri Lanka suffers nationwide power outage due to monkey, know what exactly happened
Fatima Sana Shaikh makes this BIG claim about male actors, says, 'If Shah Rukh Khan...'
The Visionary Behind Modern Data Platforms: Shreesha Hegde’s blueprint for industry success
Sam Nujoma passes away at 95: Know all about Namibia's fiery freedom fighter and first president
'Jahan Kaam, Wahan hum': PM Modi pitches leadership mantra to students during Pariksha Pe Charcha
Raheja Developer's 42-floor The Leela Sky Villas to bring ultra-luxury to Central West Delhi
Cristiano Ronaldo doesn't have any tattoos, reason will leave you SHOCKED, it is...
Prayagraj sees 300-km-long traffic jam, leave devotees without food, water amid Mahakumbh
Tirupati Laddu Prasadam row: CBI arrests four people in ghee adulteration case
JEE Mains 2025 Result: NTA JEE Session 1 result to be declared on..., know how to download scorecard
Donald Trump reveals BIG plan, says committed to 'buy and own' Gaza, allow others to...
Did Lionel Messi’s son Thiago score 11 goals in single match for Inter Miami? Here's the truth
India vs England: Rohit Sharma goes past Chris Gayle in all-time ODI list led by Shahid Afridi
Ed Sheeran BREAKS silence after Bengaluru cops stop his street performance: 'It wasn't just...'
India gains, Pakistan struggles: Forex reserves rise to Rs 55300044 crore, Pak's decline continues
IND vs ENG: Rohit Sharma returns to form before Champions Trophy, slams 32nd ODI century vs England
'Mummy daantegi...': Little boy screams as tiger pulls his shirt at zoo, WATCH viral video
Manipur CM N Biren resigns nearly two years after ethnic violence in state
Viral Video: Women travel in train toilet to Maha Kumbh, internet says "Is this a joke?
Vicky Jain's 'bizarre' comment leaves wife Ankita fuming with anger, netizens declare him 'red flag'
Bengaluru cops stop Ed Sheeran's street performance, video goes viral - Watch
Viral video: Lion spotted on moving jeep? Here’s the truth
YouTuber Gaurav Taneja reveals he was 'shocked' over his wife's decision to...
Teddy Day 2025: Date, history and significance of the fourth day of Valentine’s week
'Sugar is the biggest toxin...': Naga Chaitanya calls sugar more toxic than alcohol and tobacco