$Microsoft(MSFT.US) is borrowing in the bond market for the first time in more than 9 years
The AAA rated giant is looking to raise at least $25 billion in a US high-grade bond sale, per BloombergThe deal spans up to 10 tranches with maturities from 2 to 40 years, and the longest bond, due 2066, is being talked at up to 1.35 percentage points over Treasuries$Microsoft(MSFT.US) last sold bonds in January 2017, a $17 billion deal that came months after it borrowed nearly $20 billion to buy LinkedInIt's one of only two US companies rated AAA by both Moody's and S&P, alongside $Johnson & Johnson(JNJ.US)It's also the first mega-cap tech bond deal since $Alphabet(GOOGL.US) sold $25 billion on August 6Proceeds go to general corporate purposes including capex, buybacks and acquisitions, per the filing$Microsoft(MSFT.US) is down about 1.5% today after giving up an early post-earnings gainWhen the company with the strongest balance sheet in tech starts borrowing, it shows how expensive the AI buildout has gotten. Even the biggest cash piles aren't enough to fund it alone anymoreSource: StockMarket.News
