By Cristal Cody
Tupelo, Miss., March 30 – Oracle Corp. sold $20 billion of senior notes (A3/A+/A-) in six tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $3.5 billion tranche of 2.5% five-year notes priced at 99.963 to yield 2.508%, or a spread of Treasuries plus 210 basis points.
The company sold $2.25 billion of 2.8% seven-year notes at 99.785 to yield 2.834%, or a 225 bps over Treasuries spread.
Oracle priced $3.25 billion of 2.95% 10-year notes at 99.897 to yield 2.962%. The notes were sold with a Treasuries plus 225 bps spread.
A $3 billion tranche of 3.6% 20-year notes priced at 99.731 to yield 3.619%, or Treasuries plus 225 bps.
The company placed $4.5 billion of 3.6% 30-year notes at 99.654 to yield 3.619%. The bonds priced at a spread of 225 bps over Treasuries.
Finally, $3.5 billion of 3.85% notes due April 1, 2060 priced at 99.615 to yield 3.869%, or Treasuries plus 250 bps.
Initial price talk on the five-year notes was in the Treasuries plus 250 bps area.
The seven-, 10-, 20- and 30-year notes were talked at the Treasuries plus 265 bps area. The 40-year bonds were talked at the Treasuries plus 290 bps area.
BNY Mellon Capital Markets LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including stock repurchases, dividend payments, debt repayment and acquisitions.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Amount: | $20 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNY Mellon Capital Markets LLC, BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Santander Investment Securities Inc., Standard Chartered Bank and TD Securities (USA) LLC
|
| Trade date: | March 30
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: A3
|
| S&P: A+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | April 1, 2025
|
| Coupon: | 2.5%
|
| Price: | 99.963
|
| Yield: | 2.508%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole call before March 1, 2025 at price equal to greater of par and Treasuries plus 35 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| Seven-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | April 1, 2027
|
| Coupon: | 2.8%
|
| Price: | 99.785
|
| Yield: | 2.834%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Feb. 1, 2027 at price equal to greater of par and Treasuries plus 35 bps; thereafter at par
|
| Price guidance: | Treasuries plus 265 bps area
|
|
|
| 10-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | April 1, 2030
|
| Coupon: | 2.95%
|
| Price: | 99.897
|
| Yield: | 2.962%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Jan. 1, 2030 at price equal to greater of par and Treasuries plus 35 bps; thereafter at par
|
| Price guidance: | Treasuries plus 265 bps area
|
|
|
| 20-year notes
|
| Amount: | $3 billion
|
| Maturity: | April 1, 2040
|
| Coupon: | 3.6%
|
| Price: | 99.731
|
| Yield: | 3.619%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Oct. 1, 2039 at price equal to greater of par and Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 265 bps area
|
|
|
| 30-year notes
|
| Amount: | $4.5 billion
|
| Maturity: | April 1, 2050
|
| Coupon: | 3.6%
|
| Price: | 99.654
|
| Yield: | 3.619%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Oct. 1, 2049 at price equal to greater of par and Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 265 bps area
|
|
|
| 40-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | April 1, 2060
|
| Coupon: | 3.85%
|
| Price: | 99.615
|
| Yield: | 3.869%
|
| Spread: | Treasuries plus 250 bps
|
| Call features: | Make-whole call before Oct. 1, 2059 at price equal to greater of par and Treasuries plus 40 bps; thereafter at par
|
| Price guidance: | Treasuries plus 290 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
