By Marisa Wong and Cristal Cody
Los Angeles, March 23 – Oracle Corp. disclosed details of its $15 billion sale of senior notes in six tranches (Baa2/A/BBB+) in an FWP filing with the Securities and Exchange Commission.
The first tranche is $2.75 billion of 1.65% five-year notes priced at 99.952 to yield 1.66%, or a spread of Treasuries plus 80 basis points. Initial price talk had the tranche in the Treasuries plus 95 bps area.
The five-year notes feature a make-whole call at Treasuries plus 15 bps until one month prior to maturity and a par call after that.
The second tranche is for $2 billion of 2.3% seven-year notes priced at 99.743 to yield 2.34%, or a Treasuries plus 100 bps spread. Talk had the tranche coming in the Treasuries plus 110 bps area.
The seven-year notes feature a make-whole call at Treasuries plus 15 bps until two months prior to maturity and a par call after that.
A third tranche consists of $3.25 billion of 2.875% 10-year notes priced at 99.845 to yield 2.893%. The notes priced with a Treasuries plus 120 bps spread after being talked in the 130 bps area.
The 10-year notes feature a make-whole call at Treasuries plus 20 bps until three months prior to maturity and a par call after that.
Fourth, Oracle sold $2.25 billion of 3.65% 20-year notes at 99.326 to yield 3.698%, or a Treasuries plus 140 bps spread. Initial price talk had the notes expected in the Treasuries plus 155 bps area.
The 20-year notes feature a make-whole call at Treasuries plus 25 bps until six months prior to maturity and a par call after that.
A fifth $3.25 billion tranche of 30-year notes priced with a 3.95% coupon at 99.825 to yield 3.96%. The notes have a spread of 155 bps over Treasuries. Initial price talk was in the 165 bps area.
The 30-year notes feature a make-whole call at Treasuries plus 25 bps until six months prior to maturity and a par call after that.
The sixth tranche is a $1.5 billion series of 4.1% 40-year notes priced at 99.804 to yield 4.11%, or a spread of Treasuries plus 170 bps. Talk had the notes in the 180 bps area.
The 40-year notes feature a make-whole call at Treasuries plus 30 bps until six months prior to maturity and a par call after that.
BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used for general corporate purposes, including repaying the entire $1.5 billion of the company’s 2.8% notes due July 2021, the entire $4.25 billion of its 1.9% notes due September 2021 and all $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.
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| Issue: | Senior notes
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| Amount: | $15 billion
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., HSBC Securities (USA) Inc., MUFG, NatWest Markets Securities Inc., Santander Investment Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Trade date: | March 22
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| Settlement date: | March 24
|
| Ratings: | Moody’s: Baa2
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| S&P: A
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| Fitch: BBB+
|
|
|
| 2026 notes
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| Amount: | $2.75 billion
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| Maturity: | March 25, 2026
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| Coupon: | 1.65%
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| Price: | 99.952
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| Yield: | 1.66%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Feb. 25, 2026 at Treasuries plus 15 bps; par call after that
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| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2028 notes
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| Amount: | $2 billion
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| Maturity: | March 25, 2028
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| Coupon: | 2.3%
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| Price: | 99.743
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| Yield: | 2.34%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Jan. 25, 2028 at Treasuries plus 15 bps; par call after that
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| 2031 notes
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| Amount: | $3.25 billion
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| Maturity: | March 25, 2031
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| Coupon: | 2.875%
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| Price: | 99.845
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| Yield: | 2.893%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Dec. 25, 2030 at Treasuries plus 20 bps; par call after that
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| Price talk: | Treasuries plus 130 bps area
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|
|
| 2041 notes
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| Amount: | $2.25 billion
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| Maturity: | March 25, 2041
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| Coupon: | 3.65%
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| Price: | 99.326
|
| Yield: | 3.698%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Sept. 25, 2040 at Treasuries plus 25 bps; par call after that
|
| Price talk: | Treasuries plus 155 bps area
|
|
|
| 2051 notes
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| Amount: | $3.25 billion
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| Maturity: | March 25, 2051
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| Coupon: | 3.95%
|
| Price: | 99.825
|
| Yield: | 3.96%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Sept. 25, 2050 at Treasuries plus 25 bps; par call after that
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| Price talk: | Treasuries plus 165 bps area
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|
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| 2061 notes
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| Amount: | $1.5 billion
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| Maturity: | March 25, 2061
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| Coupon: | 4.1%
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| Price: | 99.804
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| Yield: | 4.11%
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| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call in whole or in part at any time prior to Sept. 25, 2060 at Treasuries plus 30 bps; par call after that
|
| Price talk: | Treasuries plus 180 bps area
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