Oracle Prices $15 Billion Aggregate Principal Amount of Investment Grade Notes

Rhea-AI Summary

Oracle Corporation has announced the pricing of its sale of $15 billion in investment-grade notes with varying interest rates and maturities from 2026 to 2061. The interest rates range from 1.650% to 4.100%, payable semi-annually starting September 25, 2021. The offering is set to settle on March 24, 2021. Proceeds will be used for general corporate purposes, including debt repayment, dividends, stock repurchases, and potential acquisitions. The offering is backed by a syndicate led by major financial institutions.

Positive

• Successful pricing of $15 billion in investment-grade notes.
• Proceeds to be used for debt repayment and strategic corporate initiatives.

Negative

• None.

AUSTIN, Texas, March 22, 2021 /PRNewswire/ -- Oracle Corporation (NYSE: ORCL) today announced the pricing of its sale of $2,750,000,000 of 1.650% Notes due 2026 (the "2026 Notes"), $2,000,000,000 of 2.300% Notes due 2028 (the "2028 Notes"), $3,250,000,000 of 2.875% Notes due 2031 (the "2031 Notes"), $2,250,000,000 of 3.650% Notes due 2041 (the "2041 Notes"), $3,250,000,000 of 3.950% Notes due 2051 (the "2051 Notes") and $1,500,000,000 of 4.100% Notes due 2061 (the "2061 Notes"). The offering is expected to settle on March 24, 2021, subject to customary closing conditions.

The 2026 Notes will bear interest at the rate of 1.650% per year, the 2028 Notes will bear interest at the rate of 2.300% per year, the 2031 Notes will bear interest at the rate of 2.875% per year, the 2041 Notes will bear interest at the rate of 3.650% per year, the 2051 Notes will bear interest at the rate of 3.950% per year and the 2061 Notes will bear interest at the rate of 4.100% per year. Interest on each series of notes will be payable semi-annually on March 25 and September 25, commencing September 25, 2021.

Oracle intends to use the net proceeds of the offering for general corporate purposes, which includes the repayment of indebtedness, and may also include payment of cash dividends on its common stock, stock repurchases and future acquisitions.

The offering is being made through an underwriting syndicate led by BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC.

The offering of these securities is made only by means of a prospectus, copies of which may be obtained by contacting: BofA Securities, Inc., NC1-004-03-43, 200 North College Street - 3rd Floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, Telephone: 1-800-294-1322, Email: dg.prospectus_requests@bofa.com; Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146; prospectus@citi.com; Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005-2836,  Toll-Free: (800) 503-4611; prospectus.CPDG@db.com; J.P. Morgan Securities LLC, 383 Madison Avenue New York, New York 10179, Telephone: 1-212-834-4533; or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attn: WFS Customer Service, E-Mail: wfscustomerservice@wellsfargo.com, Toll-Free: 1-800-645-3751.

The notes are being offered pursuant to an automatically effective shelf registration statement filed by Oracle Corporation with the U.S. Securities and Exchange Commission on March 11, 2021.

Important Information

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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SOURCE Oracle

FAQ

What amount did Oracle price for its notes offering?

Oracle priced $15 billion in investment-grade notes.

What are the interest rates of the notes offered by Oracle?

The interest rates range from 1.650% to 4.100%.

When is the settlement date for Oracle's notes offering?

The settlement date is March 24, 2021.

What will Oracle do with the proceeds from the notes offering?

The proceeds will be used for general corporate purposes, including debt repayment, dividends, and stock repurchases.

Which institutions are leading Oracle's notes offering?

The offering is led by BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, J.P. Morgan Securities, and Wells Fargo Securities.