Summary
Oracle Corporation (ORCL) filed an 8-K on April 26, 2013, reporting the entry into a significant new $3,000,000,000 5-year unsecured revolving credit facility. This facility, effective April 22, 2013, was established with a syndicate of lenders led by Wells Fargo Bank, National Association, and is intended for general corporate purposes, including backing its commercial paper program. The agreement includes standard covenants, notably a debt-to-capitalization ratio not exceeding 45%, and matures on April 20, 2018. Additionally, the filing details an update to Oracle's existing $3,000,000,000 commercial paper program, with new dealer and issuing/paying agency agreements finalized on April 23, 2013. Importantly, at the time of the filing, Oracle had not drawn any funds from the new credit facility nor had any commercial paper notes outstanding under its program. This proactive financing move indicates Oracle's focus on maintaining robust liquidity and financial flexibility.
Key Highlights
- 1Oracle entered into a $3 billion, 5-year unsecured revolving credit facility on April 22, 2013.
- 2The credit facility is intended for general corporate purposes, including backstopping commercial paper issuance.
- 3The facility has a maturity date of April 20, 2018.
- 4A key financial covenant requires Oracle's total net debt to total capitalization ratio not to exceed 45%.
- 5Oracle updated its commercial paper program with new dealer and agency agreements on April 23, 2013.
- 6No funds were borrowed under the new credit facility at the time of filing.
- 7No commercial paper notes were outstanding under the program at the time of filing.