Microsoft Corporation (NASDAQ: MSFT) has just filed a shelf registration statement with the SEC that will allow the company to sell debt instruments from time to time if it chooses. No terms were given, no size is indicated, and no underwriters are mentioned.
The company said the use of funds will be for general corporatepurposes, which may include funding for working capital, capitalexpenditures, repurchases of our capital stock and acquisitions.
With $25 billion or more in liquidity, you wonder if this isn’t justanother regular filing. Of course it could also be adding someleverage to its books to conduct that super-buyback. With shares at a decade low, anything is possible.
Jon C. Ogg
November 20, 2008