Microsoft Corp, Redmond realizes that there are people out there that want a share in its success but would like a dividend too, so it has filed to offer $750m of convertible exchangeable principal-protected preferred shares, and most of the proceeds will be used to buy in common shares with the balance going to working capital. The shares will convert into Microsoft common shares according to a formula to be determined at the time of pricing, or an equivalent amount of cash at Microsoft’s option. The preferred shares will also be exchangeable at Microsoft’s option for convertible subordinated notes due 1999. At maturity, any outstanding notes will be settled either in Microsoft common shares or cash, again according to a formula to be determined at the time of pricing. And again, the quarterly dividend rate will be established at the time of pricing. Lead managers for the offering are Goldman, Sachs & Co and Morgan Stanley & Co Inc.
XOX Corp, St Paul, Minnesota-based developer of geometry software for use as a component in computer-aided design, manufacturing and engineering, geoscience, scientific visualization, medical imaging and geographic information applications, got its initial public offering of 870,000 units, each of one share and one warrant for a second share at $8, away at $7 per unit. Net proceeds came to some $5m, but XOX did not say what they were wanted for. Underwriter was Equity Securities Trading Co Inc.
