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NewsPoster Apr 25, 2013 04:14 PM
Microsoft offering over $1.2 billion in bonds in US, EU
Microsoft has commenced selling debt in the US and European markets. According to the <a href="" rel='nofollow'><em>Wall Street Journal</em></a>, the initial offering is a minimum of $500 million. The move is the software developer's fifth offering since 2009, and the company should be able to get the lowest yields of the year for a five-year corporate debt offering. <br><br />
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Initial estimates show the bonds boasting a five-year maturing yielding 0.35 to 0.40 percentage point more than similar Treasury bonds. Ten-year bonds offer 1.05 to 1.15 percentage points, with 30-year bonds sporting 1.25 to 1.30 percentage points. European bond offerings are being offered, with Microsoft looking for $715 million in bonds.<br />
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The move is similar to what Apple announced in its last set of <a href="" rel='nofollow'>quarterly earnings</a>, with expected demand for both companies bonds strong. Apple's credit rating is AA+, with Microsoft coming in slightly higher at AAA. Corporate bond offerings are seen as a way for both companies to bridge the current low-yield markets and stave off some financial uncertainties for future quarters, at least until the economic climate improves.
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