By Andrea Heisinger
New York, July 12 - Oracle Corp. priced a benchmark $3.25 billion of notes (A2/A/A) in two tranches on Monday, a source away from the sale said.
The $1 billion of 3.875% 10-year notes priced at 99.779 to yield 3.902%, or Treasuries plus 85 basis points. The notes were sold at the tight end of guidance in the 90 bps area.
A second tranche of $2.25 billion in 5.375% 30-year bonds sold at 98.841 to yield 5.454% with a spread of Treasuries plus 140 bps. The tranche was also sold at the tight end of talk in the 145 bps area.
The notes were sold under Rule 144A.
Call option information was not available for the two notes at press time.
Bank of America Merrill Lynch, BNP Paribas Securities Corp. and J.P. Morgan Securities Inc. ran the books.
Proceeds are going to repay debt due in January 2011, to replenish cash used to pay down debt and for general corporate purposes.
Oracle last sold bonds in a $4.5 billion deal in three tranches on June 30, 2009. The 10-year notes from that sale priced significantly higher at 155 bps, and the 30-year bonds came in at 185 bps.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Notes
|
| Amount: | $3.25 billion
|
| Bookrunners: | Bank of America Merrill Lynch, BNP Paribas Securities Corp., J.P. Morgan Securities Inc.
|
| Distribution: | Rule 144A
|
| Trade date: | July 12
|
| Settlement date: | July 19
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2020
|
| Coupon: | 3.875%
|
| Price: | 99.779
|
| Yield: | 3.902%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | 90 bps area
|
|
|
| 30-year bonds
|
| Amount: | $2.25 billion
|
| Maturity: | July 15, 2040
|
| Coupon: | 5.375%
|
| Price: | 98.841
|
| Yield: | 5.454%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | 145 bps area
|
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