Oracle brings $10 billion megadeal; ERAC, Goldman Sachs also price; Oracle, Goldman firm

By Aleesia Forni and Cristal Cody

Virginia Beach, June 30 – Oracle Corp., ERAC USA Finance LLC and Goldman Sachs Group Inc. sold new bonds during a solid session for the high-grade market.

These issuers capped off the month of June pricing nearly $15 billion of paper.

Oracle’s $10 billion megadeal was the highlight of the session, with the seven-part deal pricing around 10 basis points tighter compared to initial guidance.

In other market action, ERAC came to market with $750 million of notes in two parts, while Goldman Sachs sold $4 billion of notes in 10- and 30-year tranches.

A source noted that Goldman’s new bond offering was more than two times oversubscribed.

With Monday’s supply, the week’s total new issuance is already closing in on what sources had predicted to be around a $15 billion week.

Following the rush of issuance on Monday, the primary’s pace is expected to calm for the remainder of the Independence Day holiday-shortened week.

Investment-grade credit spreads stayed mostly softer over the day, according to market sources.

The Markit CDX North American Investment Grade series 22 index eased 1 bp to a spread of 59 bps.

Oracle’s notes were slightly better in the secondary market, a trader said.

Goldman Sachs’ two tranches of notes traded about 1 bp tighter on the bid side in aftermarket trading, according to a trader.

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