Microsoft plans to make a private offering of senior notes and use the proceeds to repay short-term debt, the company announced today.
The Redmond, Washington-based company also said it intends to repurchase shares of its common stock during or after the private offering.
The offering represents $1.15 billion in aggregate principal amount of convertible senior notes due 2013. The initial buyers will have a 13-day option to purchase up to $100,000 principal amount of additional convertible notes.
The notes will be convertible in some circumstances to cash or a combination of cash and common stock prior to March 15th, 2013. After that date the convertible notes will be convertible at any time, Microsoft said.
The interest rate and other terms, including the conversion rate, will be determined during negotiations.
Reuters