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Oracle filed preliminary prospectus supplements on Monday, November 2, for $10 billion in common stock and $10 billion in senior notes, outlining a combined $20 billion financing plan through separate equity and debt offerings.
The stock filing and notes filing describe proposed offerings, not completed sales or cash already raised. Both documents are dated November 2 and marked subject to completion.
Neither offering depends on the other closing. Oracle says the common-stock offering can close without the notes offering, and the notes offering can close without the stock sale. It also cautions that the concurrent offering may not be completed on the terms described, or at all.
Oracle said net proceeds would be used for general corporate purposes. Possible uses include capital expenditures, repayment of debt, future investments or acquisitions, cash dividends and share repurchases. The filings do not earmark the entire $20 billion for artificial intelligence investment.
The stock supplement leaves the final per-share price, underwriting discounts and net proceeds blank. Investors therefore should distinguish the announced offering sizes from the amount Oracle would receive after pricing, fees and expenses.
The financing combines two different claims on the company: new common equity and senior debt. The stock filing states that the common shares rank junior to the notes. Final terms and completion of each offering remain separate steps.
JBizNews Desk | New York
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