Microsoft files plan for three-part debt offering with SEC; board had authorized up to $6B

Microsoft moves forward in first debt offering

SEATTLE — Microsoft Corp.’s plan to raise debt for the first time in its 36-year history moved forward Monday, according to preliminary documents filed with regulators.

The world’s largest software maker said in a Securities and Exchange Commission filing that it plans to offer five, 10 and 30-year notes at some point this month.

Microsoft did not define the terms of the sale or say how much it hoped to raise in the offering, but last September the company’s board authorized it to take on up to $6 billion in debt. Standard & Poor’s Rating Services gave Microsoft an “AAA” corporate credit rating.

The authorization came just before interest rates soared. Microsoft, which is sitting on more than $25 billion in cash, could afford to wait until rates came down to make a move.

The company said it will use proceeds from the sale for general corporate purposes, including possible acquisitions and stock buybacks.

Corporate debt offerings dropped off last fall but picked up again in January. Microsoft’s issue comes on the heels of offerings by Whirlpool Corp., Nokia Inc. and Starwood Hotels & Resorts Worldwide Inc.

J.P. Morgan Securities Inc. is the lead underwriter on the sale.

Shares of Microsoft slipped 10 cents to close at $19.32.