Summary
Oracle Corporation (ORCL) filed an 8-K on July 8, 2009, to report the consummation of a significant debt issuance. The company successfully issued and sold a total of $4.50 billion in notes across three tranches: $1.50 billion of 3.750% Notes due 2014, $1.75 billion of 5.000% Notes due 2019, and $1.25 billion of 6.125% Notes due 2039. This offering was made under Oracle's existing shelf registration statement and was underwritten by major financial institutions. The proceeds from this substantial debt financing are likely intended to bolster the company's liquidity, fund potential acquisitions, or support ongoing operational and strategic initiatives. Investors should note the terms and maturity dates of these notes as they represent a material increase in Oracle's long-term debt obligations.
Key Highlights
- 1Oracle Corporation completed the issuance and sale of $4.50 billion in senior notes on July 8, 2009.
- 2The issuance comprised three tranches: $1.50 billion in 3.750% Notes due 2014, $1.75 billion in 5.000% Notes due 2019, and $1.25 billion in 6.125% Notes due 2039.
- 3The offering was conducted under Oracle's Form S-3 registration statement filed in May 2007.
- 4Key underwriters for the offering included Banc of America Securities LLC, Morgan Stanley & Co. Incorporated, and Wachovia Capital Markets, LLC.
- 5The debt issuance was governed by an Indenture dated January 13, 2006, and subsequent supplemental indentures.
- 6The filing confirms the execution of the underwriting agreement on June 30, 2009.
- 7Jeff Epstein, Executive Vice President and Chief Financial Officer, signed the report on behalf of Oracle.