In September, Microsoft announced its first-ever program to issue corporate debt, to the tune of $6 billion. The company’s first move was to issue commercial paper, corporate debt that can be bought and sold and is typically issued for terms of three months or less.
Today, Microsoft filed a shelf registration statement with the Securities and Exchange Commission, laying the groundwork for issuance of longer-term corporate bonds at any time.
The company sold nearly all of its $2 billion commercial paper authorization by Oct. 23. Microsoft received the highest corporate credit ratings available.
In the shelf registration statement, Microsoft said it would use the bonds for “general corporate purposes, which may include funding for working capital, capital expenditures, repurchases of our capital stock and acquisitions.”
The securities will be issued “in one or more series under an indenture between us and The Bank of New York Mellon Trust Company, N.A., as trustee.” The bonds will be “senior unsecured obligations” in denominations of $2,000 or any integral multiple of $1,000 above that.
Under the current authorization, Microsoft could issue up to $4 billion in corporate bonds.