By Devika Patel
Knoxville, Tenn., Nov. 8 – Oracle Corp. offered further details about a $10 billion sale of senior notes (A1/AA-/A+) that priced in five tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $1.25 billion of 2.625% notes due 2023 with a spread of Treasuries plus 65 bps. These notes priced at 99.934 to yield 2.637%.
It sold $2 billion of 2.95% notes due 2024 with a spread of Treasuries plus 80 bps. These notes priced at 99.842 to yield 2.975%.
Oracle brought to market $2.75 billion of 3.25% notes due 2027 with a spread of Treasuries plus 95 bps. These notes priced at 99.889 to yield 3.263%.
There was a tranche of $1.75 billion of 3.8% notes due 2037 with a spread of Treasuries plus 105 bps. These notes priced at 99.624 to yield 3.827%.
The company sold $2.25 billion of 4% notes due 2047 with a spread of Treasuries plus 125 bps. These notes priced at 99.531 to yield 4.027%.
BofA Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including stock repurchases, dividend payments, debt repayment and acquisitions.
The computer software and technology company is based in Redwood City, Calif.
| Issuer: | Oracle Corp.
|
| Amount: | $10 billion
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| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC and J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Standard Chartered Bank
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 9
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2023
|
| Amount: | $1.25 billion
|
| Maturity: | Feb. 15, 2023
|
| Coupon: | 2.625%
|
| Price: | 99.934
|
| Yield: | 2.637%
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until Jan. 15, 2023, then a par call
|
|
|
| Notes due 2024
|
| Amount: | $2 billion
|
| Maturity: | Nov. 15, 2024
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| Coupon: | 2.95%
|
| Price: | 99.842
|
| Yield: | 2.975%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Sept. 15, 2024, then a par call
|
|
|
| Notes due 2027
|
| Amount: | $2.75 billion
|
| Maturity: | Nov. 15, 2027
|
| Coupon: | 3.25%
|
| Price: | 99.889
|
| Yield: | 3.263%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Aug. 15, 2027, then a par call
|
|
|
| Notes due 2037
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| Amount: | $1.75 billion
|
| Maturity: | Nov. 15, 2037
|
| Coupon: | 3.8%
|
| Price: | 99.624
|
| Yield: | 3.827%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until May 15, 2037, then a par call
|
|
|
| Notes due 2047
|
| Amount: | $2.25 billion
|
| Maturity: | Nov. 15, 2047
|
| Coupon: | 4%
|
| Price: | 99.531
|
| Yield: | 4.027%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until May 15, 2047, then a par call
|
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