Why is Oracle issuing $5.00 billion in notes?

The filing indicates the notes are being issued for general corporate purposes. This could include funding ongoing operations, potential future acquisitions, refinancing existing debt, or investing in growth initiatives.

What are the interest rates and maturity dates of these notes?

The notes have varying terms: $1.25 billion carry a 4.950% coupon and mature in 2013; $2.50 billion carry a 5.750% coupon and mature in 2018; and $1.25 billion carry a 6.500% coupon and mature in 2038.

Does this issuance indicate financial distress for Oracle?

Typically, a large debt issuance by a company like Oracle does not necessarily indicate financial distress, especially when conducted under an existing shelf registration. It is often a strategic move to secure capital at favorable rates for business development or financial management.

Where can I find more details about the terms of these notes?

Further details on the material terms and conditions of the notes are available in the Form of Officers’ Certificate filed as an exhibit to this 8-K, as well as the referenced Indenture and Supplemental Indenture.

ORCL/ORCL-PD 8-K SEC Disclosure

Summary

Oracle Corporation (ORCL) announced through an 8-K filing on April 8, 2008, its intention to issue and sell $5.00 billion in aggregate principal amount of notes. This significant debt offering includes $1.25 billion of 4.950% notes due 2013, $2.50 billion of 5.750% notes due 2018, and $1.25 billion of 6.500% notes due 2038. The offering is being conducted under Oracle's effective shelf registration statement and is expected to be consummated on April 9, 2008. This debt issuance suggests Oracle is seeking to raise substantial capital, likely for general corporate purposes, potential acquisitions, or to manage its existing debt structure. Investors should note the varying maturity dates and coupon rates, which provide different risk and return profiles. The filing also references the underwriting agreements and the governing indenture, indicating a standard, albeit large-scale, debt financing transaction.

Key Highlights

1Oracle Corporation is issuing $5.00 billion in aggregate principal amount of notes.
2The notes are comprised of three tranches: $1.25 billion of 4.950% notes due 2013, $2.50 billion of 5.750% notes due 2018, and $1.25 billion of 6.500% notes due 2038.
3The debt offering is expected to be consummated on April 9, 2008.
4The issuance is being conducted under Oracle's existing shelf registration statement filed on Form S-3.
5The transaction involves a standard underwriting syndicate led by Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. Incorporated.
6The notes will be governed by an Indenture dated January 13, 2006, as amended by a First Supplemental Indenture dated May 9, 2007.

ORACLE CORP 8-K Report, Corporate Update (Apr 8, 2008)

Summary

Key Highlights

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