Microsoft prices $25 billion bond offering across ten tranches

Microsoft ($MSFT) priced $25 billion of senior unsecured notes, confirming the size and terms of a major financing. The package comprises $2 billion of floating-rate debt and $23 billion of fixed-rate notes. Fixed coupons range from 4.85% to 6.35%, while maturities extend from 2028 to 2066, spreading the company’s repayment obligations over several decades.

The offering is expected to close on November 4. Microsoft said the proceeds may support working capital, capital expenditure, acquisitions, share repurchases and repayment of existing debt. The financing gives it additional flexibility as it funds its business and infrastructure expansion, but the announcement does not allocate the entire amount to AI spending. Pricing establishes the borrowing terms; it should be distinguished from settlement and receipt of the funds, which remain scheduled for the expected closing.

Sources:

• news.microsoft.com
• schwab.wallst.com