Microsoft Finalizes Private Exchange Offers and Consent Solicitations

November 21, 2023: Microsoft Corporation (MSFT) has concluded its private exchange offers and consent solicitations, successfully exchanging outstanding notes for new notes with lower interest rates. The exchange offers’ final settlement is expected to occur on or about November 16, 2023.

The exchange offers were made to holders of specific outstanding notes issued by Microsoft. The holders of the old notes could exchange them for new notes with lower interest rates. The exchange offers aim to reduce Microsoft’s interest expense and improve its financial flexibility.

The exchange offers were successful, with most holders of the old notes electing to exchange their notes for the new ones. Microsoft expects to realize annual interest savings of approximately $250 million due to the exchange offers.

“We are pleased with the strong participation in our exchange offers,” said Chris Lewandowski, Microsoft’s Chief Financial Officer. “The success of these offers demonstrates investors’ confidence in Microsoft’s financial strength and creditworthiness.”

The exchange offers are the latest in a series of actions Microsoft has taken to manage its debt and improve its financial position. In recent years, Microsoft has also repurchased billions of dollars of its stock and increased its dividend.

Microsoft’s strong financial position is a crucial advantage for the company. It allows Microsoft to invest in new growth opportunities and return capital to shareholders.

Here are some of the key takeaways from the news:**

• Microsoft has successfully concluded its private exchange offers and consent solicitations.
• The exchange offers will result in annual interest savings of approximately $250 million for Microsoft.
• The exchange’s success demonstrates investors’ confidence in Microsoft’s financial strength and creditworthiness.