Dec. 3, 2013 5:32 p.m. ET
Microsoft Corp.
MSFT -0.36%
Microsoft Corp.
U.S.: Nasdaq
$38.31
-0.14
-0.36%
Dec. 3, 2013 4:00 pm
Volume (Delayed 15m)
:
48.68M
AFTER HOURS
$38.33
+0.02
+0.05%
Dec. 3, 2013 6:26 pm
Volume (Delayed 15m):
3.42M
P/E Ratio
14.19
Market Cap
$320.98 Billion
Dividend Yield
2.92%
Rev. per Employee
$810,010
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sold $8 billion of debt in the largest combined dollar- and euro-denominated investment-grade corporate bond deal in more than a decade, according to data provider Dealogic.
The dual-currency deal—featuring $3.25 billion in U.S. dollar bonds and 3.5 billion ($4.75 billion) in euro bonds—is the largest U.S. dollar and euro deal since AT&T Inc.’s five-part $10.1 billion deal in November 2001, Dealogic said.
Microsoft’s offering spotlights the thirst by U.S. corporate giants to tap overseas investors—European ones in particular—and diversify their fundraising sources as postcrisis regulations crimp traditional bank lending.
Non-European issuers have sold $90.1 billion of investment-grade bonds in euros this year, more than double 2012′s full year tally of $43.4 billion and the most to this point in any year since 2008, Dealogic said.
In September, a unit of U.S. real-estate investment trust
Simon Property Group Inc.
SPG +0.02%
Simon Property Group Inc.
U.S.: NYSE
$148.87
+0.03
+0.02%
Dec. 3, 2013 4:01 pm
Volume (Delayed 15m)
:
1.09M
AFTER HOURS
$149.04
+0.17
+0.11%
Dec. 3, 2013 4:42 pm
Volume (Delayed 15m):
41,240
P/E Ratio
37.60
Market Cap
$46.19 Billion
Dividend Yield
3.22%
Rev. per Employee
$926,231
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sold EUR750 million of bonds to help pay down debt it used for its first acquisition in Europe, a stake in shopping-center operator Klepierre.
Microsoft’s triple-A rated U.S. debt priced with a premium or “spread” of 0.35 percentage point over comparable Treasurys for $1.25 billion of five-year debt; a 0.90 point spread for $1.5 billion of 10-year debt; and a 1.05 point spread for $500 million of 30-year debt, according to a person familiar with the transaction.
The company dropped a U.S. dollar denominated floating-rate tranche it had planned to issue, the person added, but went ahead with the planned fixed-rate U.S. dollar tranches.
Its euro-denominated debt priced earlier in Tuesday’s session at 2.125% for eight-year bonds and 3.125% for 15-year bonds, the person said.
The bookrunners on the offering were Barclays, HSBC, J.P. Morgan Chase & Co. and Wells Fargo. Representatives for these firms had no immediate comment or could not be reached.
A spokesman for Microsoft also had no immediate comment, but the company said in a filing it plans to use the proceeds for “general corporate purposes,” which may include working capital funds, stock buybacks, acquisitions, or to pay down existing debt.
The company agreed in September to buy the devices and services business of Nokia Corp., as well as to license Nokia’s patents and mapping services, for EUR5.44 billion ($7.4 billion).
Write to Katy Burne at katy.burne@wsj.com
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Microsoft Sells $8 Billion of Debt – Wall Street Journal
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