Microsoft Prices $25 Billion in Senior Notes Maturing 2028 to 2066

Microsoft priced $25 billion of senior unsecured notes on October 29, 2026, according to a company release and a U.S. Securities and Exchange Commission pricing term sheet. The offering has ten series, eight fixed-rate and two floating-rate, with maturities from 2028 to 2066. Settlement is expected on November 4, 2026.

The release describes Microsoft, which trades on Nasdaq as MSFT, as a technology company that builds AI-powered platforms and tools. The total is $25.0 billion: $23.0 billion fixed-rate and $2.0 billion floating-rate. Microsoft is selling $25 billion of senior unsecured notes, and the longest maturity is due in 2066. The pricing term sheet sets the interest terms for each series separately.

A Ladder of Eight Maturity Dates From 2028 to 2066

All ten series mature on November 3, and they fall on eight dates in total. The 2028 date carries $3.0 billion, split between $2.0 billion of fixed-rate notes and $1.0 billion of floating-rate notes. The 2029 date carries $4.25 billion, with $3.25 billion fixed and $1.0 billion floating.

Further out, the 2031 notes total $3.25 billion and the 2033 notes $2.5 billion. The 2036 and 2056 notes are the largest fixed-rate series at $4.0 billion each, while the 2046 and 2066 notes are $2.0 billion each.

Only the 2028 and 2029 dates include both structures. Every other maturity in the offering is fixed-rate.

The pricing term sheet sets fixed-rate interest semi-annually on May 3 and November 3, starting May 3, 2027. Floating-rate interest is paid quarterly on February 3, May 3, August 3 and November 3, starting February 3, 2027.

Total Offering Size
Microsoft’s pricing term sheet lists tranches totaling $25.0 billion in aggregate principal, made up of $2.0 billion of floating-rate notes and $23.0 billion of fixed-rate notes.

Fixed-Rate Coupons Climb With Each Longer Maturity

The fixed-rate notes total $23.0 billion across eight series. Coupons run from 4.850% on the 2028 notes to 6.350% on the 2066 notes, and each longer fixed-rate maturity carries a higher rate than the one before it.

The 2029 notes pay 5.000% and the 2031 notes 5.200%. The 2033 notes carry 5.350% and the 2036 notes 5.550%. The 2046, 2056 and 2066 notes carry 6.150%, 6.250% and 6.350%, respectively.

Each fixed-rate series was priced between 99.624% and 99.983% of principal, according to the pricing term sheet. The spread over the benchmark Treasury rises from 25 basis points on the 2028 notes to 105 basis points on the 2066 notes. Yield to maturity ranges from 4.869% on the 2028 notes to 6.356% on the 2066 notes.

Floating-Rate Notes Are Priced Over SOFR

The two floating-rate notes total $2.0 billion, with $1.0 billion due November 3, 2028 and $1.0 billion due November 3, 2029. Each pays interest at Compounded SOFR plus a spread.

According to the SEC pricing term sheet, the spread is 35 basis points on the 2028 notes and 53 basis points on the 2029 notes. The preliminary prospectus supplement says the floating-rate coupon resets quarterly.

The compounded rate is calculated from the SOFR Index, over an observation period that starts two U.S. Government Securities Business Days before each interest period. Rates cannot fall below zero, and The Bank of New York Mellon Trust Company, N.A. is the calculation agent.

Neither floating-rate series can be redeemed by Microsoft before maturity. The supplement describes SOFR as an overnight secured rate with a limited history, and says the interest amount is not known until shortly before each interest payment date.

Microsoft is selling $25 billion of senior unsecured notes, and the longest maturity is due in 2066.

Use of Proceeds, Redemption Terms and Settlement

Microsoft says it intends to use the net proceeds for general corporate purposes, which may include working capital, capital expenditures, repurchases of capital stock, acquisitions and repayment of existing debt.

The notes were offered under a prospectus dated December 12, 2024, as supplemented. The term sheet gives the settlement date as November 4, 2026, described as T+4 after the October 29 trade date, and the company’s release gives the same closing date. Buyers wanting to trade before then must arrange alternative settlement to avoid a failed trade, the term sheet notes.

Microsoft may redeem fixed-rate notes before their par call date, or before maturity for the 2028 notes, at the greater of a make-whole amount or 100% of principal, plus accrued interest. From the par call date, the notes can be redeemed at 100% of principal plus accrued interest. The 2028 notes have no par call date.

The preliminary supplement says the indenture has no financial covenants and does not restrict additional debt, liens, dividends or stock repurchases. Its capitalization table lists total debt of $35,481 million as of September 30, 2026.

The term sheet lists Moody’s Aaa and S&P AAA ratings, each with a stable outlook.

As of October 30, 2026, the pricing terms are set and settlement is expected on November 4. Interest on the fixed-rate notes is payable semi-annually, and interest on the floating-rate notes is payable quarterly, both beginning in 2027, according to the pricing term sheet and the preliminary supplement.