Microsoft on Monday said in a regulatory filing that it will issue bonds for the first time to raise and undisclosed amount of capital. And given that Microsoft doesn't exactly need the money you can't help but wonder what the software giant will do with the dough.
For the record, Microsoft is using the net proceeds from the bonds "for general corporate purposes, which may include funding for working capital, capital expenditures, repurchases of our capital stock and acquisitions."
Bloomberg reckons that Microsoft will buy back shares. Boooorrrrrinnnngggg. Let's go the acquisition route. Microsoft has an AAA credit rating and will have Wall Street fawning over these bonds. Wall Street already fell in love with IBM, Cisco and Oracle bonds. What's not to love about companies with gobs of cash issuing bonds?