Published on 6/30/2016 in the Prospect News Investment Grade Daily.
New Issue: Oracle details pricing of $14 billion of notes in five tranches
By Lisa Kerner
Charlotte, N.C., June 30 – Oracle Corp. detailed its sale of $14 billion of senior notes (A1/AA-/A+) in five parts, according to an FWP filed with the Securities and Exchange Commission.
The company priced $4.25 billion of 1.9% notes due Sept. 15, 2021 at 99.826 to yield 1.935%. The notes sold 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. The notes priced at 99.983 to yield 2.402%.
Oracle priced $3 billion of 2.65% 10-year notes at 99.624 to yield plus 2.693%. The notes sold at 120 bps over Treasuries.
The company priced $1.25 billion of 3.85% 20-year notes at 99.985 to yield 3.851%. They sold at 155 bps over Treasuries.
And, Oracle sold $3 billion of 4% 30-year notes at 99.982 to yield 4.001%. The notes priced 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 SEC. 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
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SG Americas Securities, LLC, UBS Securities LLC
|
| Pricing date: | June 29
|
| Settlement date: | July 7
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $4.25 billion
|
| Maturity: | Sept. 15, 2021
|
| Coupon: | 1.9%
|
| Price: | 99.826
|
| Yield: | 1.935%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
| Par call: | Any time on or after Aug. 15, 2021
|
|
|
| Seven-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Sept. 15, 2023
|
| Coupon: | 2.4%
|
| Price: | 99.983
|
| Yield: | 2.402%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps, plus or minus 5 bps
|
| Make-whole call: | Treasuries plus 20 bps
|
| Par call: | Any time on or after July 15, 2023
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 15, 2026
|
| Coupon: | 2.65%
|
| Price: | 99.624
|
| Yield: | 2.693%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps, plus or minus 5 bps
|
| Make-whole call: | Treasuries plus 20 bps
|
| Par call: | Any time on or after April 15, 2026
|
|
|
| 20-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | July 15, 2036
|
| Coupon: | 3.85%
|
| Price: | 99.985
|
| Yield: | 3.851%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps, plus or minus 5 bps
|
| Make-whole call: | Treasuries plus 25 bps
|
| Par call: | Any time on or after Jan. 15, 2036
|
|
|
| 30-year notes
|
| Amount: | $3 billion
|
| Maturity: | July 15, 2046
|
| Coupon: | 4%
|
| Price: | 99.982
|
| Yield: | 4.001%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps, plus or minus 5 bps
|
| Make-whole call: | Treasuries plus 30 bps
|
| Par call: | Any time on or after Jan. 15, 2046
|
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