Printed from http://www.electronista.com

Microsoft offering over $1.2 billion in bonds in US, EU

updated 04:12 pm EDT, Thu April 25, 2013

Move similar to Apple's recently announced plan to access debt market

Microsoft has commenced selling debt in the US and European markets. According to the Wall Street Journal, the initial offering is a minimum of $500 million. The move is the software developer's fifth offering since 2009, and the company should be able to get the lowest yields of the year for a five-year corporate debt offering.

Initial estimates show the bonds boasting a five-year maturing yielding 0.35 to 0.40 percentage point more than similar Treasury bonds. Ten-year bonds offer 1.05 to 1.15 percentage points, with 30-year bonds sporting 1.25 to 1.30 percentage points. European bond offerings are being offered, with Microsoft looking for $715 million in bonds.

The move is similar to what Apple announced in its last set of quarterly earnings, with expected demand for both companies bonds strong. Apple's credit rating is AA+, with Microsoft coming in slightly higher at AAA. Corporate bond offerings are seen as a way for both companies to bridge the current low-yield markets and stave off some financial uncertainties for future quarters, at least until the economic climate improves.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News