Oracle Sells $3 Billion of Fixed, Floating Bonds in Three PartsSarika Gangar
Oracle Corp. issued $3 billion of fixed- and floating-rate securities in its first dollar-denominated offering this year.
The company sold 5.5-year debt split between $500 million of floating-rate bonds that yield 58 basis points more than the three-month London interbank offered rate and $1.5 billion of 2.375 percent securities at 95 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.
Oracle, based in Redwood City, California, also sold $1 billion of 3.625 percent, 10-year debt at a relative yield of 110 basis points, Bloomberg data show. The bonds are expected to be rated A1 by Moody’s Investors Service, the data show.
The largest maker of database software last sold dollar debt in October, raising $2.5 billion each of 1.2 percent, five- year securities to yield 45 basis points more than benchmarks and 2.5 percent, 10-year debt at a spread of 68 basis points, Bloomberg data show.
The bonds due 2022 traded at 92.1 cents on the dollar yesterday to yield 3.51 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Proceeds will be used for general corporate purposes, which may include stock repurchases, dividend payments and future acquisitions, the person said. Bank of America Corp., Credit Suisse Group AG and HSBC Holdings Plc managed the offering, Bloomberg data show.
Oracle is offering the debt after companies sold $55.5 billion of notes in the U.S. in June, the slowest period in 18 months, according to data compiled by Bloomberg. Yields on dollar-denominated bonds rose to 4.25 percent as of yesterday from an all-time low of 3.35 percent on May 2, according to the Bank of America Merrill Lynch U.S. Corporate & High Yield index.