By Andrea Heisinger
New York, Nov. 5 - Microsoft Corp. gave terms of its $2.25 billion of senior notes (Aaa/AAA/AA+) priced in three tranches, according to an FWP filing with the Securities and Exchange Commission.
A $600 million tranche of 0.875% five-year notes sold at 99.423 to yield 0.993% with a spread of Treasuries plus 27 basis points. The notes were sold at the tight end of talk in the 30 bps area.
There is a make-whole call at Treasuries plus 5 bps.
There was $750 million of 2.125% 10-year notes priced at 99.427 to yield 2.189% with a spread of 47 bps over Treasuries. The tranche priced at the low end of guidance in the 50 bps area.
The tranche has a make-whole call at 10 bps over Treasuries.
Finally, a $900 million tranche of 3.5% 30-year bonds priced at 99.862 to yield 3.562% with a spread of Treasuries plus 67 bps. The bonds were sold at the tight end of talk in the 70 bps area.
There is a make-whole call at Treasuries plus 12.5 bps.
Barclays, J.P. Morgan Securities LLC and UBS Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Microsoft was last in the market with a $2.25 billion offering of bonds in three parts on Feb. 3, 2011. That deal included a 2.5% five-year note sold at 38 bps over Treasuries, a 4% 10-year note priced at 48 bps over Treasuries and a 5.3% 30-year bond priced at 68 bps over Treasuries.
The software products and services company is based in Redmond, Wash.
| Issuer: | Microsoft Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, UBS Securities LLC
|
| Senior co-managers: | HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Lebenthal & Co. LLC, Samuel A. Ramirez & Co. Inc., Williams Capital Group LP
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 7
|
| Ratings: | Moody's: Aaa
|
| Standard & Poor's: AAA
|
| Fitch: AA+
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Nov. 15, 2017
|
| Coupon: | 0.875%
|
| Price: | 99.423
|
| Yield: | 0.993%
|
| Spread: | Treasuries plus 27 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 30 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 15, 2022
|
| Coupon: | 2.125%
|
| Price: | 99.427
|
| Yield: | 2.189%
|
| Spread: | Treasuries plus 47 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 50 bps area
|
|
|
| 30-year bonds
|
| Amount: | $900 million
|
| Maturity: | Nov. 15, 2042
|
| Coupon: | 3.5%
|
| Price: | 99.862
|
| Yield: | 3.562%
|
| Spread: | Treasuries plus 67 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 70 bps area
|
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