Microsoft plans multi-tranche bond issue

Microsoft plans to sell a multi-tranche bond ranging in maturities from five to 40 years, according to an SEC filing on Monday.

The size of the deal, looking to price on Monday, is expected to be $7 billion.

IPTs are Treasuries plus 55bp area on a five-year tranche; T+80bp area on a seven-year, T+95bp area on a 10-year; and T+140-145bp area on a 30-year, one market source said.

IPTs on a 20-year, meanwhile, are 20bp inside the 30-year, while IPTs on a 40-year are 30bp wide of the 30-year tranche.

The deal also includes a five-year floating rate note.

Proceeds will be used for general corporate purposes, which may include funding for working capital, capital expenditures, repurchases of our capital stock, acquisitions and repayment of existing debt.

Barclays and Citigroup are active bookrunners. Bank of America Merrill Lynch, Goldman Sachs, HSBC, JP Morgan, RBS and Wells Fargo are passive bookrunners.