Microsoft sells $19.75bn of debt

Microsoft chief executive Satya Nadella

Microsoft has sold $19.75 billion of bonds in one of the biggest sales ever of company debt securities and said it may use some of the proceeds to help pay for the acquisition of professional network LinkedIn.

Microsoft announced on June 13 it would acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion.

“Microsoft intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, acquisitions (including its previously announced acquisition of LinkedIn Corp.), funding for working capital, capital expenditures, repurchases of its capital stock and repayment of its existing debt,” said Microsoft.

The Microsoft debt sale consists of the following tranches:
• $2.50 billion of 1.100 percent notes due Aug. 8, 2019
• $2.75 billion of 1.550 percent notes due Aug. 8, 2021
• $1.50 billion of 2.000 percent notes due Aug. 8, 2023
• $4.00 billion of 2.400 percent notes due Aug. 8, 2026
• $2.25 billion of 3.450 percent notes due Aug. 8, 2036
• $4.50 billion of 3.700 percent notes due Aug. 8, 2046
• $2.25 billion of 3.950 percent notes due Aug. 8, 2056