Microsoft (NASDAQ:MSFT) Ready to Issue more Debt for Shareholders

Shareholders in Microsoft (NASDAQ:MSFT) appear to be about to get a nice benefit from the software giant, as the company said in a regulatory filing they are thinking of issuing senior unsecured debt.

The issuance, which could happen today, would be for 5-, 10- and 30-year senior unsecured debt in benchmark size. Normally that would be a minimum of $500 million, although it'll probably much higher, based on what Microsoft has done in the recent past.

In September Microsoft issued $4.75 billion in debt, which included 3- and 5-year notes. Microsoft has a AAA rating.

It's not clear what Microsoft will do with the capital, but usually it's used for boosting dividends, repurchasing shares, or a M&A deal. All of those would be a strong benefit for those holding shares in the company.

Microsoft was trading at $27.60, down $0.34, or 1.20 percent, as of 1:15 PM EST.