By Andrea Heisinger
New York, June 30 - Oracle Corp. priced $4.5 billion of notes (A2/A/A) in three tranches Tuesday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The $1.5 billion of five-year notes priced at par to yield 3.75%, or Treasuries plus 120 basis points. The notes had a make-whole call at Treasuries plus 20 bps.
The $1.75 billion of 5% 10-year notes priced at 99.627 to yield 5.048%, or Treasuries plus 155 bps. The notes include a make-whole call at Treasuries plus 25 bps.
A $1.25 billion tranche of 6.125% 30-year notes priced at 99.334 to yield 6.174%, or Treasuries plus 185 bps. There is a make-whole call at Treasuries plus 30 bps.
All of the tranches priced "in or around" price talk, the informed source said. There was never official guidance, only whispered, he said.
Bookrunners were Banc of America Securities LLC, Morgan Stanley & Co. Inc. and Wachovia Capital Markets LLC.
Senior co-managers were BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mitsubishi UFJ Securities, Mizuho Securities USA Inc. and RBS Securities Inc.
Co-managers were HSBC Securities, SG Americas Securities, J.P. Morgan Securities Inc., BNY Mellon Securities, RBC Capital Markets Corp. and U.S. Bancorp Investments.
The deal was benchmark-sized and had "around $13 billion on the books," the source said. Orders were "skewed fairly evenly" among the three tranches.
Proceeds will go toward general corporate purposes and for future acquisitions, including the proposed acquisition of Sun Microsystems Inc.
The software company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Notes
|
| Total amount: | $4.5 billion
|
| Bookrunners: | Banc of America Securities LLC, Morgan Stanley & Co. Inc., Wachovia Capital Markets LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., RBS Securities Inc.
|
| Co-managers: | HSBC Securities, SG Americas Securities, J.P. Morgan Securities Inc., BNY Mellon Securities, RBC Capital Markets Corp., U.S. Bancorp Investments
|
| Trade date: | June 30
|
| Settlement date: | July 8
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 8, 2014
|
| Coupon: | 3.75%
|
| Price: | Par
|
| Yield: | 3.75%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 120 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | July 8, 2019
|
| Coupon: | 5%
|
| Price: | 99.627
|
| Yield: | 5.048%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 155 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 8, 2039
|
| Coupon: | 6.125%
|
| Price: | 99.334
|
| Yield: | 6.174%
|
| Spread: | Treasuries plus 185 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 185 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.
