By Wendy Van Sickle
Columbus, Ohio, Feb. 2 – Oracle Corp. priced a four-part offering of notes (expected: Baa2/BBB/BBB) totaling $5.25 billion on Thursday, according to an FWP filing with the Securities and Exchange Commission.
Oracle priced $750 million of 4.5% long five-year notes at 99.806 to yield 4.538%, or a spread of 105 basis points over Treasuries.
The company also priced $750 million of 4.65% long seven-year notes at 99.682 to yield 4.699%, or a spread of 125 bps over Treasuries.
In addition, the company priced $1.5 billion of 4.9% 10-year notes at 99.93 to yield 4.909%, or a spread of 150 bps over Treasuries.
The company sold $2.25 billion of 5.55% 30-year notes at 99.493 to yield 5.585%, or a spread of 200 bps over Treasuries.
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 in full the remaining borrowings of $3.1 billion under the company’s bridge facility and to repay the outstanding $1.25 billion of senior notes due Feb. 15 and to pay any related premiums, fees and expenses.
The remainder of the net proceeds of this offering, if any, are intended to repay all or a portion of Oracle’s outstanding commercial paper notes and to pay any related premiums, fees and expenses. As of Nov. 30, Oracle had outstanding commercial paper maturing at various dates through March, with an annualized effective interest rate of 4.48%.
The computer software and technology company is based in Austin, Tex.
| Issuer: | Oracle Corp.
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| Amount: | $5.25 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.
|
| 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: | Feb. 2
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| Settlement date: | Feb. 6
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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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|
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| 2028 notes
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| Amount: | $750 million
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| Maturity: | May 6, 2028
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| Coupon: | 4.5%
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| Price: | 99.806
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| Yield: | 4.538%
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| Spread: | Treasuries plus 105 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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| Cusip: | 68389XCM5
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|
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| 2030 notes
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| Amount: | $750 million
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| Maturity: | May 6, 2030
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| Coupon: | 4.65%
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| Price: | 99.682
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| Yield: | 4.699%
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| Spread: | Treasuries plus 125 bps
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| Call option: | Make-whole call in whole or in part prior to March 6, 2030 at Treasuries plus 20 bps; par call after that
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| Cusip: | 68389XCN3
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|
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| 2033 notes
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| Amount: | $1.5 billion
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| Maturity: | Feb. 6, 2033
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| Coupon: | 4.9%
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| Price: | 99.93
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| Yield: | 4.909%
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| Spread: | Treasuries plus 150 bps
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| Call option: | Make-whole call in whole or in part prior to Nov. 6, 2032 at Treasuries plus 25 bps; par call after that
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| Cusip: | 68389XCP8
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| 2053 notes
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| Amount: | $2.25 billion
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| Maturity: | Feb. 6, 2053
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| Coupon: | 5.55%
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| Price: | 99.493
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| Yield: | 5.585%
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| Spread: | Treasuries plus 200 bps
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| Call option: | Make-whole call in whole or in part prior to Aug. 6, 2052 at Treasuries plus 30 bps; par call after that
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| Cusip: | 68389XCQ6
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