Published on 7/1/2014 in the Prospect News Investment Grade Daily.
New Issue: Oracle details $10 billion seven-part issue of senior notes
By Aleesia Forni
Virginia Beach, July 1 – Oracle Corp. detailed on Tuesday its $10 billion issue of senior notes (A1/A+/A+) priced in seven tranches, according to FWP filed with the Securities and Exchange Commission.
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 99.888 to yield 2.273%, or 65 bps over Treasuries.
A $1.5 billion tranche of 2.8% notes due 2021 sold at Treasuries plus 70 bps. Pricing was at 99.855 to yield 2.823%.
Oracle also sold $2 billion of 3.4% 10-year notes at 99.773 to yield 3.427%, or 90 bps over Treasuries.
The company priced $1.75 billion of 4.3% 20-year notes at Treasuries plus 95 bps. The notes sold at 99.96 to yield 4.303%.
Finally, $1 billion of 4.5% notes due 2044 sold at 99.951 to yield 4.503%, or 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: | $10 billion
|
| Joint bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Mitsubishi UFJ Securities (USA), Inc., Santander Investment Securities Inc., Standard Chartered Bank, SunTrust Robinson Humphrey, Inc.
|
| 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
|
| Call features: | Non-callable
|
|
|
| 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
|
| Call features: | Non-callable
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 8, 2019
|
| Coupon: | 2.25%
|
| Price: | 99.888
|
| Yield: | 2.273%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 70 bps area
|
| Call features: | Make-whole call Treasuries plus 10 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | July 8, 2021
|
| Coupon: | 2.8%
|
| Price: | 99.855
|
| Yield: | 2.823%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 85 bps area
|
| Call features: | Make-whole call at Treasuries plus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | July 8, 2024
|
| Coupon: | 3.4%
|
| Price: | 99.773
|
| Yield: | 3.427%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 100 bps to 105 bps area
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to April 8, 2024, then callable at par
|
|
|
| 20-year bonds
|
| Amount: | $1.75 billion
|
| Maturity: | July 8, 2034
|
| Coupon: | 4.3%
|
| Price: | 99.96
|
| Yield: | 4.303%
|
| Spread: | Treasuries plus 95 bps
|
| Price talk: | Treasuries plus 105 bps area
|
| Call features: | Make-whole call at Treasuries plus 15 bps prior to Jan. 8, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | July 8, 2044
|
| Coupon: | 4.5%
|
| Price: | 99.951
|
| Yield: | 4.503%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 125 bps area
|
| Call features: | Make-whole call at Treasuries plus 20 bps prior to Jan. 8, 2044, then callable at par
|
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