Oracle Raises $15B Via Medium, Long-Term Debt

Oracle Corp ORCL priced the sale of $15 billion notes, including $2.75 billion of 1.650% notes due 2026, $2 billion of 2.300% notes due 2028, $3.25 billion of 2.875% notes due 2031, $2.25 billion of 3.650% notes due 2041, $3.25 billion of 3.950% notes due 2051 and $1.5 billion of 4.100% notes due 2061.

• The offering is expected to settle on March 24, 2021. 
• Interest on each series of notes would be payable semi-annually on March 25 and September 25, commencing September 25, 2021.
• Oracle expects to use the offering proceeds for general corporate purposes, including debt repayment, dividend payments, share buybacks, and future acquisitions.
• The offering was led by BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC.
• Oracle planned to open new regions as fast as possible to support the rapidly growing multi-billion-dollar infrastructure business. It also raised its share buyback authorization by $20 billion. The company hiked the quarterly dividend per share by 33% to $0.32.
• Oracle’s cash and cash equivalents amounted to $22.3 billion as of February 28, 2021. Notes payable and other borrowings amounted to $63.5 billion.
• Oracle’s stock has gained 45.3% last year.
• Price action: ORCL shares closed at $66.32 on Monday.