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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

May 11, 2009 at 9:53 AM

Microsoft to offer debt

Update 5:08 p.m.: Microsoft confirmed that it will issue $3.75 billion in long-term debt and gave more details on the breakdown.

They will offer $2 billion of 2.95 percent notes due June 1, 2014; $1 billion of 4.2 percent notes due June 1, 2019; and $750 million of 5.2 percent notes due June 1, 2039.

Update 1:11 p.m.: Microsoft’s plans to issue debt would be the company’s first long-term debt offering. Back in September, the board of directors authorized the company to issue $6 billion in debt. Here is our coverage from that announcement.

The company then issued $2 billion in commercial paper, short-term debt for corporate purposes and to purchase stock. That leaves $4 billion in debt the company could still seek. Bloomberg reported the company plans to offer $3.75 billion in long-term debt, citing an unnamed source.

Earlier: In a regulatory filed today, Microsoft says it plans to sell debt to raise money. The company will offer 5-, 10- and 30- year debt. The filing does not specify how much money the software company plans to raise with the debt offering, or when it will make the debt offering.

The proceeds will be used for working capital, capital expenditures, repurchases of stock and acquisitions, the company said in its filing.

Bloomberg is reporting that the sale could happen as early as today.

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