By Aleesia Forni
Virginia Beach, June 30 – Oracle Corp. was in Monday’s market with a $10 billion sale of notes (A1/A+/A+) in seven tranches, according to market sources.
The sale included $1 billion of three-year floating-rate notes priced at par to yield Libor plus 20 basis points.
A second tranche was $750 million of five-year floaters priced at par to yield Libor plus 51 bps.
There was also $2 billion of 2.25% five-year notes priced at 65 bps over Treasuries.
A $1.5 billion tranche of 2.8% notes due 2021 sold at Treasuries plus 70 bps.
Oracle also sold $2 billion of 3.4% 10-year notes at 90 bps over Treasuries.
The company priced $1.75 billion of 4.3% 20-year notes at Treasuries plus 95 bps.
Finally, $1 billion of 4.5% notes due 2044 sold at 115 bps over Treasuries.
Bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, possibly including stock repurchases, payment of cash dividends on common stock, for future acquisitions and repayment of debt.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Senior notes
|
| Amount: | $4 billion
|
| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Trade date: | June 30
|
| Settlement date: | July 8
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A+
|
| Fitch: A+
|
| Distribution: | SEC-registered
|
|
|
| Three-year floaters
|
| Amount: | $1 billion
|
| Maturity: | July 7, 2017
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
| Price talk: | Libor plus 30 bps
|
|
|
| Five-year floaters
|
| Amount: | $750 million
|
| Maturity: | Oct. 8, 2019
|
| Coupon: | Libor plus 51 bps
|
| Price: | Par
|
| Yield: | Libor plus 51 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 8, 2019
|
| Coupon: | 2.25%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 8, 2021
|
| Coupon: | 2.8%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 85 bps area
|
|
|
| Ten-year notes
|
| Amount: | $2 billion
|
| Maturity: | July 8, 2024
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 100 bps to 105 bps area
|
|
|
| Twenty-year bonds
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| Amount: | $1.75 billion
|
| Maturity: | July 8, 2034
|
| Coupon: | 4.3%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 105 bps area
|
|
|
| Thirty-year bonds
|
| Amount: | $1 billion
|
| Maturity: | July 8, 2044
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 125 bps area
|
|
|
|
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