2/10/2015

Microsoftsellsrecord$10.8billionofbondsin6partofferingLivemint

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10FEBRUARY2015

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FIRSTPUBLISHED:TUE,FEB102015.0754AMIST

Microsoftsellsrecord$10.8billionofbondsin
6partoffering

EPAPER

WORLDCUP2015

SLIDESHOW
TUE,FEB102015.1146AM

ArvindKejriwal,therise,
fallandriseoftheAam
Aadmi

Thefirmsoldnotesin6parts,including$2.25billionof40yearobligationswitha4%coupon
ElliottStam

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TUE,FEB102015.1106AM

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Kejriwalelectedleaderof
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2015

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SAT,FEB072015.1133AM

PNBraisesRs1,000crore
viaprivateplacement

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Photo:Bloomberg

NewYork:MicrosoftCorp.sold$10.8billionofdebtinitsbiggestbondsale
onrecord,takingadvantageofinvestordemandforthehighestrated
corporatesecurities.

Editor'spicks
Theworldslargestsoftwaremakersoldnotesinsixparts,including$2.25
billionof40yearobligationswitha4%coupon,accordingtodatacompiled
byBloomberg.Thosebondssoldatayieldof153basispointsmorethan
30yearTreasuries.Thecompanyincreaseditssaleby54%after
marketing$7billionofdebtearlierintheday.
AAProutsBJP,Congress
inDelhielections

PNBraisesRs1,000croreviaprivate
placement
PoorshowinDelhitocostBSPits
nationalpartystatus
ALSOREAD

Managingfamilybusinesses
Sugaryettofindasweetspot
NatcoPharmafilesnewdrug
applicationswithUSFDA

close

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Thereisalotofdemandforquality,andMicrosoftdoesntcometomarket
often,theyhaveatonofcashandyoudontworryaboutgivingthemyour
money,saidMatthewDuch,amoneymanageratCalvertInvestmentsin
Bethesda,Maryland,whichoverseesmorethan$13billioninassets.Youll
getitback.
Microsoft,oneofonlyahandfulofcompanieswithtopAAAratings,is

Fivetakeawaysfrom
AAPslandslidevictoryin
Delhielections

benefitingfromdemandforthesafestdebtasglobalgrowthandinflation
remainstagnant.Companieswiththehighestcreditratinghaveseentheir
borrowingcostsfallto2.36%,about63%oftheaverageoverthepast
decade,accordingtotheBankofAmericaMerrillLynchAAAUSCorporate
Index.
Risingsales

WhytheCongressshould
cheerAAPslandslide

Proceedsfromtheofferingwillbeusedforgeneralcorporatepurposes,
whichmayincludecapitalexpenditures,stockrepurchases,acquisitions
anddebtrepayments,accordingtoaregulatoryfilingMondaywiththeUS
SecuritiesandExchangeCommission.

http://www.livemint.com/Money/fCCiU0bC6qXIxtsiHNlnvJ/Microsoftsellsrecord108billionofbondsin6partoffe.html

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2/10/2015

Microsoftsellsrecord$10.8billionofbondsin6partofferingLivemint
Inadditiontothe40yearbondthecompanysoldissuesoffive,seven,
10,20and30yearsecurities.
MicrosoftlastissuedbondsinDecember2013,whenitsold$8billionof
securitiesindollarsandeuros,itspreviousrecordoffering,accordingto
datacompiledbyBloomberg.

AAPstriumphinDelhi:
Willthesparkspread?

Thecompanyscashandshortterminvestmentswere$90.2billionasof
themostrecentquarterwith91%ofthatheldoutsidetheUSandsubjectto
materialrepatriationtaxeffectsifitweretobebroughtbacktothetheUS
fordividendsorbuybacks,thecompanysaidinafiling.Thecompany
repurchased$2billionofitsownsharesinthequarter.

WhyKejriwalandModi
winsarenotcontradictory

TonyImperati,aspokesmanforMicrosoft,declinedtocommentonthe
sale.
Microsoftsfiscalsecondquartersalesandprofitexceededanalysts
estimatesastheworldslargestsoftwaremakerbenefitedfromgrowthin
cloudservicesandaresurgentXboxOnegameconsole.Profitexcluding
certaincostsintheperiodended31Decemberwas77centsashare.
Revenuerose8%to$26.5billion,Bloombergdatashow.
Inthisenvironment,acompanylikeMicrosoftwillalwaysgetacertainlevel
ofdemandthatothercompanieswontbeabletoget,JodyLurie,a
corporatecreditanalystatJanneyMontgomeryScottLLCinPhiladelphia,
whichmanages$61billioninassets,saidinatelephoneinterview.Its
clearinvestorsarelookingtoputcashtowork.Microsofthastonsofcash,
butitdoesntwanttorisklosingthisopportunity.Bloomberg

MICROSOFT BOND CORPORATESECURITIES DEBTSALE SOFTWARE

ALSOREAD
Sugaryettofinda
sweetspot

AAPstriumphin
Delhi:Willthespark
spread?

Kejriwalelectedleader
ofAAPlegislature
party

PNBraisesRs1,000
croreviaprivate
placement

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