Microsoft plans jumbo bond sale of at least $25 billion

Microsoft is reportedly preparing its first U.S. investment-grade bond offering since 2017, aiming to raise at least $25 billion across as many as ten tranches with maturities from two to 40 years. The deal is being run by Wells Fargo, JPMorgan and UBS, with proceeds earmarked for general corporate purposes including capital spending. The move follows a September quarter in which capital expenditures and finance leases reached about $45.2 billion, and comes as Microsoft's AAA credit rating could support demand. The final size is still open and could change with investor appetite; pricing on the longest-dated note will be a read on how much extra yield buyers want to fund the AI buildout. First observed today, based on a Benzinga report citing Bloomberg; the page did not show a publication date.

1. Microsoft is reportedly seeking at least $25 billion through as many as 10 tranches, with maturities from two to 40 years, per a Bloomberg report cited by Benzinga.
2. It would be Microsoft's first U.S. investment-grade bond sale since 2017, when the company raised $17 billion.
3. Wells Fargo, JPMorgan Chase and UBS Group are managing the sale; proceeds are slated for general corporate purposes, including capital expenditures.
4. Early price talk on the 2066 note reportedly sat as much as 1.35 percentage points above Treasuries, per Reuters as cited by Benzinga.
5. Microsoft's fiscal Q1 2027 (September quarter) capital expenditures and finance leases totaled about $45.2 billion, roughly 30% above a year earlier.
6. Moody's and S&P Global both rate Microsoft AAA.
7. CFO Amy Hood said on the earnings call that Microsoft expects to remain free-cash-flow positive in fiscal 2027.