Oracle Bonds Climb Following Its First Dollar Offering This Year

Bonds of Oracle Corp. (ORCL) rose a day after the largest maker of database software raised $3 billion in a three-part offering, its first dollar-denominated sale this year.

Oracle’s $1 billion of 3.625 percent, 10-year notes have climbed 1.41 cents from yesterday’s issue price to 100.509 cents on the dollar to yield 3.564 percent as of 9:31 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The extra yield investors demand to own the notes rather than similar-maturity Treasuries narrowed to 93.1 basis points from an initial spread of 110, Trace data show. A basis point is 0.01 percentage point.

Redwood City, California-based Oracle’s $1.5 billion of 2.375 percent debt due January 2019 rose 0.53 cent from the issue price to 100.185 cents on the dollar to yield 2.339 percent, Trace data show. Its $500 million of floating-rate securities issued at par and due January 2019 were trading at 100.436 cents on the dollar.

Oracle last sold dollar debt in October, raising $2.5 billion each of 1.2 percent, five-year securities and 2.5 percent, 10-year debt, according to data compiled by Bloomberg.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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