By Aleesia Forni
Virginia Beach, April 28 – Oracle Corp. priced a combined $10 billion of senior notes (A1/AA-/A+) in six tranches on Tuesday, according to a market source.
A $2.5 billion 2.5% note due 2022 sold at 99.648 to yield 2.555%, or Treasuries plus 80 basis points.
There was also a $2.5 billion 2.95% note due 2025 priced at 99.543 to yield 3.003%. The notes sold with a spread of Treasuries plus 100 bps.
Oracle also priced $500 million of 3.25% notes due 2030 with a spread of Treasuries plus 130 bps. The notes sold at 99.375 to yield 3.303%.
A $1.25 billion 3.9% note due 2035 sold at 99.324 to yield 3.949%, or Treasuries plus 125 bps.
The company sold $2 billion of 4.125% bonds due 2045 at 99.589 to yield 4.149%, or 145 bps over Treasuries.
Finally, $1.25 billion of 4.375% notes due 2055 sold at 99.549 to yield 4.399% with a spread of Treasuries plus 170 bps.
Bookrunners were J.P. Morgan Securities LLC, BofA Merrill Lynch and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, possibly including stock repurchases, payment of cash dividends on common stock and funding future acquisitions.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Issue: | Senior notes
|
| Amount: | $10 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Trade date: | April 28
|
| Settlement date: | May 5
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 15, 2022
|
| Coupon: | 2.5%
|
| Price: | 99.648
|
| Yield: | 2.555%
|
| Spread: | 80 bps over Treasuries
|
| Price guidance: | 85 bps area over Treasuries
|
|
|
| 10-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 2.95%
|
| Price: | 99.543
|
| Yield: | 3.003%
|
| Spread: | 100 bps over Treasuries
|
| Price guidance: | 105 bps area over Treasuries
|
|
|
| 15-year notes
|
| Amount: | $500 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 3.25%
|
| Price: | 99.375
|
| Yield: | 3.303%
|
| Spread: | 130 bps over Treasuries
|
| Price guidance: | 135 bps area over Treasuries
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2035
|
| Coupon: | 3.9%
|
| Price: | 99.324
|
| Yield: | 3.949%
|
| Spread: | 125 bps over Treasuries
|
| Price guidance: | 130 bps area over Treasuries
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | May 15, 2045
|
| Coupon: | 4.125%
|
| Price: | 99.589
|
| Yield: | 4.149%
|
| Spread: | 145 bps over Treasuries
|
| Price guidance: | 150 bps area over Treasuries
|
|
|
| 40-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2055
|
| Coupon: | 4.375%
|
| Price: | 99.549
|
| Yield: | 4.399%
|
| Spread: | 170 bps over Treasuries
|
| Price guidance: | 175 bps area over Treasuries
|
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