Microsoft announces pricing for $25 billion in bonds

Microsoft announced pricing for $25 billion in new debt Thursday as it expands its infrastructure, CNBC reports. Microsoft expects the offerings to close Nov. 4, according to CNBC. The pricing announcement does not mean they have closed.

The financing comes as Microsoft targets $170 billion in 2026 capital expenditures to meet demand from AI labs Anthropic and OpenAI and other clients, CNBC reports. But the company has described broader potential uses for the debt. In a statement quoted by CNBC, Microsoft said the net proceeds are intended for general corporate purposes, which may include working capital, capital expenditures, stock repurchases, acquisitions and repayment of existing debt.

Earlier Thursday, Bloomberg's Brian W Smith and Caleb Mutua reported that Microsoft was seeking at least $25 billion in its first US investment-grade bond offering in nearly a decade. People familiar with the matter told Bloomberg the debt was being marketed in as many as 10 tranches, with maturities ranging from two to 40 years. They said the offering's size could change with demand.