$40 billion authorized for share repurchase; Dividend increased 18 percent
REDMOND, Wash., Sept. 22 /PRNewswire-FirstCall/ -- Microsoft Corp. today
announced that its board of directors approved a new share repurchase program
authorizing up to an additional $40 billion in share repurchases with an
expiration of September 30, 2013.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO)
The board of directors also declared a quarterly dividend of $0.13 per
share, reflecting a two cent or 18 percent increase over the previous
quarter's dividend. The dividend is payable December 11, 2008 to shareholders
of record on November 20, 2008. The ex-dividend date will be November 18,
2008.
In addition, the company stated that it has completed its previous $40
billion stock repurchase program. Microsoft has returned over $115 billion to
shareholders through a combination of share repurchases and dividends over the
last five years.
'These announcements illustrate our confidence in the long-term growth of
the company and our commitment to returning capital to our shareholders,' said
Chris Liddell, chief financial officer of Microsoft.
Microsoft also announced that its board of directors has authorized debt
financings from time to time of up to $6 billion. Pursuant to the
authorization, the company has established a $2 billion commercial paper
program. Microsoft intends to use the net proceeds from any debt financings
for general corporate purposes, which may include funding for working capital
and repurchases of stock.
The company received corporate credit ratings of AAA and Aaa by Standard &
Poor's Rating Services and Moody's Investors Service Inc., respectively. The
commercial paper is rated A-1+ by Standard & Poor's and P-1 by Moody's, the
highest ratings available from both agencies.
'The company's strong credit quality coupled with investors' current
appetite for high quality paper provides a unique opportunity for the company
to establish its first-ever commercial paper program and enhance its capital
structure,' said George Zinn, treasurer of Microsoft.
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize their
full potential.
This press release does not constitute an offer of any securities for
sale. The commercial paper notes to be issued by Microsoft have not been and
will not be registered under the Securities Act of 1933, and may not be
offered or sold except in reliance upon an exemption under the Securities Act.
SOURCE Microsoft Corp.
