Summary
Oracle Corporation (ORCL) filed an 8-K report on July 16, 2013, to announce the successful issuance and sale of $3.00 billion in aggregate principal amount of senior notes. This debt offering consisted of three tranches: $500 million in Floating Rate Notes due 2019, $1.5 billion in 2.375% Notes due 2019, and $1.0 billion in 3.625% Notes due 2023. The issuance was made under Oracle's shelf registration statement and pursuant to an underwriting agreement with several representatives of the underwriters. This transaction reflects Oracle's strategy to access capital markets for its financing needs. Investors should note the fixed and floating rate structures across different maturities, which can impact the company's interest expense and financial flexibility. The details of the notes are further elaborated in the company's filings and associated legal opinions, providing transparency for debt holders.
Key Highlights
- 1Oracle Corporation completed the issuance and sale of $3.00 billion in aggregate principal amount of senior notes on July 16, 2013.
- 2The offering included $500 million of Floating Rate Notes due 2019.
- 3The offering also included $1.5 billion of 2.375% Notes due 2019.
- 4The offering further included $1.0 billion of 3.625% Notes due 2023.
- 5The notes were issued under Oracle's existing shelf registration statement (Form S-3).
- 6The issuance was conducted through an underwriting agreement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, and HSBC Securities (USA) Inc.