Oracle plans $15B bond sale to fund cloud deals
What's the story
Oracle, the tech giant known for its software products, is looking to raise $15 billion from the US investment-grade bond market. The company is planning to sell debt in as many as seven parts, including a rare 40-year bond. The initial pricing discussions for this particular portion of the deal are around 1.65% above similarly dated Treasuries.
Funding allocation
Bond sale to support Oracle's cloud infrastructure investments
The bond sale comes as Oracle ramps up its spending on cloud infrastructure deals with OpenAI and Meta. These contracts are expected to significantly increase the company's expenses. Over the next few years, Oracle is projected to spend billions of dollars on leasing and powering data centers. The money raised from this bond sale could be used for capital expenditures, future investments or acquisitions, among other things.
Deal management
Major banks managing Oracle's bond sale
The bond sale is being managed by some of the biggest names in banking. Bank of America, Citigroup, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc and JPMorgan Chase & Co are all involved in the deal. This isn't Oracle's first foray into debt sales; the company last sold debt back in January.