Oracle prices $20 billion in combined stock and bond offerings

Oracle priced two concurrent offerings on Monday: 86,206,897 new common shares at $116.00 each, and five tranches of notes — $2 billion due 2029 at 7.000%, $1.75 billion due 2031 at 7.450%, $2.25 billion due 2033 at 7.850%, $2.5 billion due 2037 at 8.000%, and $1.5 billion due 2046 at 8.650%. Neither offering’s completion depends on the other closing, and both are expected to close November 4, subject to customary conditions. The new shares, which trade under the ticker ORCL on the New York Stock Exchange, carry a par value of $0.01 each, and Oracle filed a registration statement on Form S-3 with the U.S. Securities and Exchange Commission covering both offerings, which are being made only by prospectus supplement and accompanying prospectus.

Oracle expects net proceeds of roughly $9.9 billion from the stock sale and about $10 billion from the notes, after underwriting discounts and expenses — a combined raise of close to $20 billion. The company said proceeds may go toward general corporate purposes, including capital expenditures, repaying debt, future investments or acquisitions, and paying dividends or buying back stock. BofA Securities is sole global coordinator; Wells Fargo, Citigroup, BNP Paribas, Deutsche Bank, J.P. Morgan, PNC, Goldman Sachs, HSBC, and SMBC Nikko are joint book-running managers across both offerings, alongside BTIG on the stock side and U.S. Bancorp and Lloyds on the notes side; Intesa Sanpaolo, Mizuho, MUFG, TD Securities, Santander, BNY, CIBC, ING, and Standard Chartered are co-managers.

Why it matters

A $20 billion combined equity-and-debt raise, spread across notes maturing as far out as 2046, signals Oracle is lining up a large, long-duration capital base — without saying yet exactly what it will fund.