Oracle Closes $20 Billion Raise: 86.2 Million New Shares And $10 Billion Of Bonds
The software maker sold stock at $114.5906 a share to underwriters and five note series with coupons from 7.000% to 8.650%.
Oracle closed the sale of 86,206,897 new common shares and $10 billion of senior notes on Wednesday, an 8-K shows. The deal gives the company roughly $20 billion in fresh money from stock and debt.
Five bond series, coupons up to 8.650%
The notes came in five pieces, all issued Wednesday under an underwriting agreement dated Monday, November 2: $2.0 billion at 7.000% due 2029, $1.75 billion at 7.450% due 2031, $2.25 billion at 7.850% due 2033, $2.5 billion at 8.000% due 2037 and $1.5 billion at 8.650% due 2046.
The longest bond carries the highest coupon. BofA Securities represented the underwriters on both the stock and the notes.
Stock priced at $116.00, sold at $114.5906
Under the underwriting agreement, the banks bought the shares from Oracle at $114.5906 each. The pricing announcement set the public price at $116.00, with expected net proceeds of about $9.9 billion from the stock.
BofA took the largest allotment, 9,842,240 shares. Wells Fargo was next at 8,777,585 and Citigroup third at 6,583,621. Twenty banks shared the order in all.
Oracle shares fell 2.1% as the financing reached its closing date, according to Yahoo Finance.
Where the money may go
Oracle, which sells business software, cloud services and hardware and drew 51% of its fiscal 2026 revenue from cloud, said the proceeds will go to general corporate purposes. Those could include capital spending, debt repayment, investments or acquisitions, dividends and stock buybacks.
The company also agreed not to sell or issue more common stock for 60 days after the prospectus date without BofA's written consent. Exceptions cover employee equity plans, 401(k) contributions and acquisition issuance of up to 5% of outstanding shares.
Oracle's list of permitted uses spans everything from debt paydown to buybacks, so its later filings will show where the roughly $20 billion went.
Sources
- 8-K Filing — ORACLE CORP (ORCL) — SEC EDGAR
- Exhibit d131790dex11.htm — ORACLE CORP 8-K exhibit — SEC EDGAR
- Oracle Stocks Decline 2.1% as $20 Billion Financing Reaches Its Closing Date — Yahoo Finance
- Oracle Announces Pricing of $20 Billion of Common Stock and Senior Notes — prnewswire.com
