By Andrea Heisinger
New York, Oct. 18 - Oracle Corp. sold $5 billion of notes (A1/A+/A+) in two maturities on Thursday, a source close to the trade said.
A $2.5 billion tranche of 1.2% five-year notes sold at 99.827 to yield 1.236% with a spread of Treasuries plus 45 basis points. The tranche was sold tighter than talk in the 50 bps over Treasuries area.
There is a make-whole call at Treasuries plus 10 bps.
The second part was $2.5 billion of 2.5% 10-year notes priced at 99.878 to yield 2.514% with a spread of 68 bps over Treasuries. The bonds sold at the low end of guidance in the 70 bps area.
The tranche has a make-whole call at 12.5 bps over Treasuries.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBS Securities Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, which may include stock repurchases, possible future acquisitions and repayment of debt, including 4.95% senior notes due April of 2013 of which there is $1.25 billion outstanding.
Oracle last priced bonds in a $3.25 billion offering in two parts on July 12, 2010. A 3.875% 10-year note was priced at 85 bps over Treasuries.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Notes
|
| Amount: | $5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBS Securities Inc., Wells Fargo Securities LLC
|
| Trade date: | Oct. 18
|
| Settlement date: | Oct. 25
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Five-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 1.2%
|
| Price: | 99.827
|
| Yield: | 1.236%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 50 bps area
|
|
|
| 10-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 15, 2022
|
| Coupon: | 2.5%
|
| Price: | 99.878
|
| Yield: | 2.514%
|
| Spread: | Treasuries plus 68 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 70 bps area
|
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