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Oracle has priced $20 billion in common-stock and senior-note offerings, setting a $116 share price and the terms of five bond maturities. The company announced the pricing in a release issued Monday, November 2, at 10:09 p.m. Eastern time.
The pricing is a new step after the preliminary filings covered in JBizNews’s earlier report on Oracle’s financing plan. Those filings left the final stock price and other offering terms open. Pricing does not mean the transactions have already closed.
Oracle said it is offering 86,206,897 common shares at $116 each. It expects approximately $9.9 billion in net proceeds from the stock offering after underwriting discounts and estimated expenses.
The senior-note offering has five parts:
- $2 billion of 7.000% notes due in 2029.
- $1.75 billion of 7.450% notes due in 2031.
- $2.25 billion of 7.850% notes due in 2033.
- $2.5 billion of 8.000% notes due in 2037.
- $1.5 billion of 8.650% notes due in 2046.
The company expects approximately $10 billion in net proceeds from the notes after underwriting discounts and estimated expenses. The stated interest rates are the notes’ coupons, not a claim about their market yields.
Both offerings are expected to close Wednesday, November 4, subject to customary closing conditions. Neither depends on the other being completed, Oracle said.
Oracle said the proceeds, if the offerings close, will go toward general corporate purposes. Possible uses include capital spending, debt repayment, future investments or acquisitions, cash dividends and share repurchases. The release does not earmark all of the money for artificial intelligence spending.
BofA Securities is the sole global coordinator of the offerings, alongside a group of other underwriting banks. Oracle said the securities are being offered under a registration statement filed with the Securities and Exchange Commission.
JBizNews Desk
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