By Cristal Cody
Eureka Springs, Ark., June 29 – Oracle Corp. sold $14 billion of senior notes (A1/AA-) in five parts on Wednesday, according to a market source.
The company priced $4.25 billion of 1.9% notes due Sept. 15, 2021 with a spread of 90 basis points over Treasuries.
The company sold $2.5 billion of 2.4% notes due Sept. 15, 2023 at Treasuries plus 110 bps.
Oracle placed $3 billion of 2.65% 10-year notes 120 bps over Treasuries.
The company brought $1.25 billion of 3.85% 20-year notes at 155 bps over Treasuries.
In the final tranche, Oracle sold $3 billion of 4% 30-year notes at Treasuries plus 170 bps.
BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, according to a 424B2 filing with the Securities and Exchange Commission. Pending application of the proceeds, Oracle intends to invest the proceeds in investment-grade securities.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Amount: | $14 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Pricing date: | June 29
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $4.25 billion
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 1.9%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 15, 2026
|
| Coupon: | 2.65%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps, plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 15, 2036
|
| Coupon: | 3.85%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 15, 2046
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps, plus or minus 5 bps
|
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