Microsoft Announces Massive $25 Billion Multi-Tranche Senior Notes Offering

Event Overview

On October 29, 2026, Microsoft Corporation entered into an Underwriting Agreement with J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities, LLC (as representatives of several underwriters) for the registered public offering of $25.0 billion in aggregate principal amount of senior notes across 10 separate tranches.

Tranche Breakdown

1. $1.00B Floating Rate Notes due November 3, 2028
2. $2.00B 4.850% Notes due November 3, 2028
3. $1.00B Floating Rate Notes due November 3, 2029
4. $3.25B 5.000% Notes due November 3, 2029
5. $3.25B 5.200% Notes due November 3, 2031
6. $2.50B 5.350% Notes due November 3, 2033
7. $4.00B 5.550% Notes due November 3, 2036
8. $2.00B 6.150% Notes due November 3, 2046
9. $4.00B 6.250% Notes due November 3, 2056
10. $2.00B 6.350% Notes due November 3, 2066

Total Principal Amount: $25,000,000,000

Key Terms & Structure

• Seniority: The notes are senior unsecured obligations ranking pari passu with all other unsecured and unsubordinated debt of Microsoft.
• Governing Indenture: Issued under the Base Indenture dated May 18, 2009, between Microsoft and The Bank of New York Mellon Trust Company, N.A., as Trustee, as supplemented by the Sixteenth Supplemental Indenture dated November 4, 2026.
• Payment Schedule:
  • Floating Rate Notes: Payable quarterly in arrears on February 3, May 3, August 3, and November 3, beginning February 3, 2027.
  • Fixed Rate Notes: Payable semi-annually in arrears on May 3 and November 3, beginning May 3, 2027.
• Redemption: The Fixed Rate Notes are subject to optional redemption under specified terms; the Floating Rate Notes are not redeemable at the option of the company.

Strategic Implications

This $25 billion issuance represents a substantial debt financing operation, likely providing liquidity for ongoing capital expenditure programs (including cloud infrastructure and AI compute investments), general corporate purposes, debt refinancing, and share repurchases, while locking in long-term fixed rates stretching out as far as 2066.