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Microsoft Corporation Message Board

  • ossobucco2012 ossobucco2012 Apr 25, 2013 1:21 PM Flag

    MSFT the top AAA company....

    Five months after setting record-low borrowing costs one a five-year bond issue, Microsoft is at it again.

    The triple-A-rated company today floated guidance in the T+35 area, plus or minus three basis points, for a new five-year issue, at T+70-73, for new 10-year notes and at T+90-93 for new 30-year bonds, sources said. Talk was set firm to initial whispers in the mid-to-high T+30s for the five-year tranche, in the T+70-75 range for 10-year notes, and in the T+90-95 range for the long bonds.

    On Nov. 2 last year, Microsoft set a new all-time-low bar for five-year funding costs with a 0.875% issue of notes due 2017 at T+27, or 0.993%. The company also placed 2.125% notes due 2022 at T+47, or 2.19%, and 3.5% bonds due 2042 at T+67. Prior to that offering, Microsoft had not tapped the markets since the first quarter of 2011.

    For reference, all three of the outstanding issues traded earlier this week only modestly through those early whispers for today’s offering, including in a G-spread range from 25-28 bps for the 2017 issue, trade data show. The 10-year issue traded earlier this week at a G-spread of 68 bps, and the long bonds changed hands earlier this week at G-spreads in the mid T+80s.

    The company today may not set new all-time lows for reoffer yields, but it is on track to set the bar lower for five-year issues inked so far in 2013. The firm end of guidance indicates a five-year reoffer yield as low as 1.04%. The existing low reoffer for five-year notes this year was established earlier this month by Wal-Mart (AA/Aa2) with 1.125% notes priced at T+45, or 1.14%.

    Sentiment: Strong Buy

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    • Excellent observations! AAA. Solid. And now perched to grow and eat everyone's underwear. Go Microsoft!

      Sentiment: Strong Buy

      • 1 Reply to roirop
      • ALL the players in this space have a part of the puzzle with the exception of MSFT that has converged/integrated all the moving parts....

        WE are at the beginning of this move and it would become clear to naysayers in 2 quarter when we are heading to $50.00 a share and as AAPL, Google, AMZN, IBM all would resemble DELL et al.

        Cheers

        Osso

        Sentiment: Strong Buy

    • Just to add that MSFT has better credit rating than all G8 countries with the exception of Germany as is evidenced by its low borrowing costs....

      Don't get me wrong, AAPL is a good company, despite the fact that it was over-hyped and Steve Jobs whom I respect as an innovator, was a dirty player in business as we all remember from his TV ads....

      Steve Jobs created many innovations that ultimately became "toys" as MSFT with Windows 8, Office, Cloud is creating "tools" by integrating data management and processing for desktop and mobility for businesses and consumers alike....

      For AAPL sadly, their two main products, the iPhone and the iPad are becoming commodities and they are going to suffer and the shares may end up trading around $300, like what happened to DELL....

      MSFT has reinvented its business model despite being late to move onto mobility and our time is here now as we will eat IBM, AMZN, Google, Yahoo, AAPL, DELL, HPQ's lunches and some....

      MSFT will trade above $50.00 in a year's time as Windows 8, Office, Cloud, Surface, XBOX and soon SOFT TV and SOFTWATCH hit the market.

      This is the power of integration and is the business model that will come on top as it would be very cost effective and technologically compatible from A to Z.

      Cheers

      Osso

      Sentiment: Strong Buy

 
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