Summary
Oracle Corporation (ORCL) has filed an 8-K report to announce the redemption of its outstanding Floating Rate Notes due 2009. The company delivered an irrevocable notice on April 30, 2007, to Citibank, N.A., as Trustee, indicating its intent to redeem the full $1.5 billion principal amount of these notes. The redemption is scheduled for May 30, 2007, with the redemption price set at the principal amount plus any accrued and unpaid interest up to the redemption date. This action signals a significant financial decision by Oracle, likely driven by favorable market conditions, access to lower-cost capital, or a strategic move to optimize its debt structure. Investors should note that all interest accrual and holder rights concerning these specific notes will cease after the redemption date, with holders only entitled to the redemption payment. The company is fulfilling its debt obligations as outlined in the governing Indenture.
Key Highlights
- 1Oracle Corporation announced the redemption of its entire $1.5 billion outstanding Floating Rate Notes due 2009.
- 2The redemption notice was officially delivered on April 30, 2007.
- 3The redemption date is set for May 30, 2007.
- 4The redemption price will include the principal amount plus accrued and unpaid interest up to the redemption date.
- 5This action signifies Oracle's intent to retire this specific debt obligation.
- 6Interest on the Notes will cease to accrue on and after the redemption date.
- 7All rights of the noteholders, except for the right to receive the redemption payment, will cease after the redemption date.