Microsoft was announced as the 1st company in over a decade to be issued Triple-A credit rating for it’s newly issued bonds. Why is Microsoft getting into the bond market? Watch this FT video for some insight:
Microsoft in landmark issue
By Richard Waters in San Francisco and Nicole Bullock in New York
Published: May 11 2009 17:48 | Last updated: May 11 2009 21:47Microsoft passed a significant milestone in its financial history on Monday as it turned to the bond market for the first time to raise cash.
The landmark long-term debt issue signals a further break with the company’s traditionally conservative stance towards its balance sheet and the culmination of a six-year process since it began to adapt its financial strategy to the increasing maturity of its business. The software company set out on Monday to establish three benchmark bond offerings, with maturities of five, 10 and 30 years. These are expected to raise $3.75bn. Details of the pricing were set to be announced later in the day.
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