Business
Oracle's $20 Billion Stock-and-Bond Raise Set to Close Wednesday to Fund AI Buildout
Oracle priced about $10 billion in stock and $10 billion in bonds, with shares sold at $116, an 11.2 percent discount to the October 30 close.
Oracle priced a combined $20 billion offering, about $10 billion in stock and about $10 billion in bonds, expected to close on Wednesday, November 4, subject to customary conditions, Reuters-based reporting said.
The equity tranche covers 86.2 million shares at $116 per share, about an 11.2 percent discount to the October 30 close of $130.67, for about $9.9 billion in net proceeds.
The debt tranche covers $10 billion of senior notes across five tranches, with maturities from 2029 to 2046 and coupons from 7 percent to 8.65 percent, for about $10 billion in net proceeds.
Shares fell about 8.8 to 9 percent on November 2 to $119.22, then rose about 6 percent in morning trading on November 3 after pricing.
The raise funds Oracle's AI infrastructure buildout. At its October 28 investor day, Oracle said it would limit additional capital-market funding for its fiscal 2027 to fiscal 2030 investment cycle to $20 billion, excluding refinancing, and it reported $125.34 billion in borrowings as of August 31.
Reporting: Reuters
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