By Andrea Heisinger
New York, July 9 - Oracle Corp. was in Tuesday's market with a $3 billion sale of notes (A1/A+/A+) in three tranches, according to a market source and an FWP filing with the Securities and Exchange Commission.
There was $500 million of floating-rate notes due in January 2019 priced at par to yield Libor plus 58 basis points. Initial price talk was in the Libor plus 75 bps area.
The second part was $1.5 billion of a 2.375% note due in January 2019 sold at 99.652 to yield 2.443% with a spread of Treasuries plus 95 bps. The tranche was initially talked in the Treasuries plus 110 bps area.
There is a make-whole call at Treasuries plus 15 bps.
A $1 billion tranche of 3.625% 10-year notes was priced at 99.098 to yield 3.734% with a spread of 110 bps over Treasuries. Initial guidance was in the 125 bps to 130 bps range.
The tranche features a make-whole call at 20 bps over Treasuries.
Bookrunners were BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc.
Proceeds will be used for general corporate purposes, possibly including stock repurchases, payment of cash dividends on common stock and for future acquisitions.
Oracle last tapped the U.S. bond market with a $5 billion sale in two tranches on Oct. 18, 2012. That offering included a 1.2% five-year note priced at 45 bps over Treasuries and a 2.5% 10-year note sold at Treasuries plus 68 bps.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc.
|
| Senior co-managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Well Fargo Securities LLC
|
| Co-managers: | Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC
|
| Trade date: | July 9
|
| Settlement date: | July 16
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: A+
|
|
|
| Floaters due 2019
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2019
|
| Coupon: | Libor plus 58 bps
|
| Price: | Par
|
| Yield: | Libor plus 58 bps
|
| Call: | Non-callable
|
| Price talk: | Libor plus 75 bps area (initial)
|
|
|
| Fixed-rate notes due 2019
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 15, 2019
|
| Coupon: | 2.375%
|
| Price: | 99.652
|
| Yield: | 2.443%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 110 bps area (initial)
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2023
|
| Coupon: | 3.625%
|
| Price: | 99.098
|
| Yield: | 3.734%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 125 bps to 130 bps (initial)
|
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