Microsoft Files Shelf Offering For Potential Debt Issuance

Microsoft (MSFT) made a shelf filing with the SEC for the a potential future debt issuance. The company previously had said its board has authorized the issuance of up to $6 billion in debt, and that it planned to launch a $2 billion commercial paper program. Microsoft has the highest possible credit ratings from both Moody’s and Standard & Poor’s . The whole concept of Microsoft raising debt is likely to trigger a wave of speculation that the company might be planning a large acquisition or giant stock repurchase program - although it already has a $40 billion buyback plan in place. The company likely would have borrowed at least part of the purchase price had it gone through with its proposed acquisition of Yahoo earlier in the year. There aren’t many details in the shelf filing about the debt the company would offer; but the filing speeds up the process in the event it actually chooses to tap the credit markets. MSFT today is off 12 cents, or 0.7%, to ... (link)