By Marisa Wong
Los Angeles, Nov. 8 – Oracle Corp. priced a four-part offering of notes (expected: Baa2/BBB/BBB) totaling $7 billion, according to an FWP filing with the Securities and Exchange Commission.
Oracle priced $1 billion of 5.8% three-year notes at 99.869 to yield 5.848%, or a spread of 120 basis points over Treasuries. Price talk was in the Treasuries plus 155 bps area, according to a market source.
The company also priced $1.25 billion of 6.15% seven-year notes at 99.905 to yield 6.167%, or a spread of 185 bps over Treasuries. Talk was in the Treasuries plus 230 bps area.
In addition, the company priced $2.25 billion of 6.25% 10-year notes at 99.824 to yield 6.274%, or a spread of 205 bps over Treasuries. Talk was in the Treasuries plus 250 bps area.
The company sold $2.5 billion of 6.9% 30-year notes at 99.937 to yield 6.905%, or a spread of 255 bps over Treasuries. Price talk was in the Treasuries plus 310 bps area.
All four notes have make-whole call provisions.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds will be used to prepay a bridge loan on a dollar-for-dollar basis. As reported, the company borrowed $15.7 billion under a delayed-draw bridge loan on June 8 for its acquisition of Cerner Corp. To date, the company borrowed $4.4 billion under its term loan in August and then added another $1.3 billion to the term loan to partially repay the bridge loan.
The senior notes will rank equal in right of payment to $91.5 billion of other borrowings. The company had $135.8 billion of total liabilities outstanding as of Aug. 31, as previously noted.
The computer software and technology company is based in Austin, Tex.
| Issuer: | Oracle Corp.
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| Amount: | $7 billion
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| Issue: | Notes
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC and SMBC Nikko Securities America, Inc.
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| Co-managers: | NatWest Markets Securities Inc., Santander Investment Securities Inc., TD Securities (USA) LLC, BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., ING Financial Markets LLC and Standard Chartered Bank
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Freshfields Bruckhaus Deringer US LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 9
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| Expected ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| 2025 notes
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| Amount: | $1 billion
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| Maturity: | Nov. 10, 2025
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| Coupon: | 5.8%
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| Price: | 99.869
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| Yield: | 5.848%
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| Spread: | Treasuries plus 120 bps
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| Call option: | Make-whole call in whole or in part at any time at Treasuries plus 20 bps
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| Price talk: | Treasuries plus 155 bps area
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| Cusip: | 68389XCF0
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|
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| 2029 notes
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| Amount: | $1.25 billion
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| Maturity: | Nov. 9, 2029
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| Coupon: | 6.15%
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| Price: | 99.905
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| Yield: | 6.167%
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| Spread: | Treasuries plus 185 bps
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| Call option: | Make-whole call in whole or in part prior to Sept. 9, 2029 at Treasuries plus 30 bps; par call after that
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| Price talk: | Treasuries plus 230 bps area
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| Cusip: | 68389XCH6
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|
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| 2032 notes
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| Amount: | $2.25 billion
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| Maturity: | Nov. 9, 2032
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| Coupon: | 6.25%
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| Price: | 99.824
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| Yield: | 6.274%
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| Spread: | Treasuries plus 205 bps
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| Call option: | Make-whole call in whole or in part prior to Aug. 9, 2032 at Treasuries plus 35 bps; par call after that
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| Price talk: | Treasuries plus 250 bps area
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| Cusip: | 68389XCJ2
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| 2052 notes
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| Amount: | $2.5 billion
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| Maturity: | Nov. 9, 2052
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| Coupon: | 6.9%
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| Price: | 99.937
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| Yield: | 6.905%
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| Spread: | Treasuries plus 255 bps
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| Call option: | Make-whole call in whole or in part prior to May 9, 2052 at Treasuries plus 40 bps; par call after that
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| Price talk: | Treasuries plus 310 bps area
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| Cusip: | 68389XCK9
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