Microsoft Taps Debt Markets

Microsoft Corp. (MSFT - Analyst Report) said it would sell bonds for the first time on Monday, finally complying with investor demands and becoming the latest company to take advantage of improving credit conditions by tapping debt markets.

The world’s largest software maker disclosed its plans of selling 5-, 10- and 30-year notes in a regulatory filing. Although it does not need additional financing, the company said it would use proceeds from the sale for general corporate purposes, including working capital, capital expenditures, and repurchases of its capital stock.

Industry insiders also suggest that the company could use these funds for the potential acquisition of Yahoo Inc. (YHOO - Analyst Report) or German software firm SAP AG (SAP - Analyst Report).

Microsoft is one of the few companies that enjoy the coveted triple-A credit rating from both Standard & Poor’s and Moody’s Investors Service. Experts also consider it among the least risky investments.

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