By Cristal Cody
Chicago, March 22 – Oracle Corp. sold $15 billion of senior notes in six tranches (Baa2/A/BBB+) on Monday, according to a market source.
The first tranche came shaped as $2.75 billion of 1.65% five-year notes with a spread of Treasuries plus 80 basis points. Initial price talk had the tranche in the Treasuries plus 95 bps area.
The second tranche is for $2 billion of 2.3% seven-year notes, with a Treasuries plus 100 bps spread. Talk had the tranche coming in the Treasuries plus 110 bps area.
A third tranche of $3.25 billion of notes sold with a 2.875% coupon and comes with a March 25, 2031 maturity date. The notes priced with a Treasuries plus 120 bps spread after being talked in the 130 bps area.
Fourth, Oracle sold $2.25 billion of 3.65% 20-year notes with a Treasuries plus 140 bps spread. Initial price talk had the notes expected in the Treasuries plus 155 bps area.
A fifth $3.25 billion tranche of 30-year notes priced with a 3.95% coupon. The notes have a spread of 155 bps over Treasuries. Initial price talk was in the 165 bps area.
The sixth tranche is a $1.5 billion series of 4.1% notes due March 25, 2061, priced with a spread of Treasuries plus 170 bps. Talk has the notes in the 180 bps area.
BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners, according to a 424B2 filing with the Securities and Exchange Commission.
The notes feature a make-whole call and then a par call.
Proceeds will be used for general corporate purposes, including to repay the entire $1.5 billion of the company’s 2.8% notes due July 2021, to repay the entire $4.25 billion of its 1.9% notes due September 2021 and to repay the entire $2.5 billion of its 2.5% notes due May 2022.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Senior notes
|
| Amount: | $15 billion
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Call features: | Make-whole call, then par call for each tranche
|
| Trade date: | March 22
|
| Ratings: | Moody’s: Baa2
|
| S&P: A
|
| Fitch: BBB+
|
|
|
| 2026 notes
|
| Amount: | $2.75 billion
|
| Maturity: | March 25, 2026
|
| Coupon: | 1.65%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2028 notes
|
| Amount: | $2 billion
|
| Maturity: | March 25, 2028
|
| Coupon: | 2.3%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| 2031 notes
|
| Amount: | $3.25 billion
|
| Maturity: | March 25, 2031
|
| Coupon: | 2.875%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
| 2041 notes
|
| Amount: | $2.25 billion
|
| Maturity: | March 25, 2041
|
| Coupon: | 3.65%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | Treasuries plus 155 bps area
|
|
|
| 2051 notes
|
| Amount: | $3.25 billion
|
| Maturity: | March 25, 2051
|
| Coupon: | 3.95%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 165 bps area
|
|
|
| 2061 notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 25, 2061
|
| Coupon: | 4.1%
|
| Spread: | Treasuries plus 170 bps
|
| Price talk: | Treasuries plus 180 bps area
|
|
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