Oracle prices $20 billion stock and bond offering at $116 per share

what happened

Oracle Corp. (ORCL), a cloud computing and enterprise software company, announced on Monday the pricing of concurrent stock and senior notes offerings totaling $20 billion. The shares are priced at $116 each, 86.2 million in total, for net proceeds of about $9.9 billion. The $10 billion of notes carry coupons from 7.000% to 8.650% and mature between 2029 and 2046.

The company said both offerings are expected to close on November 4. Proceeds will go to general corporate purposes, including capital expenditures, debt repayment, future investments or acquisitions, and cash dividends or share repurchases. According to TradingView, citing RTTNews and dpa-AFX, the stock closed down 8.76% on the New York Stock Exchange at $119.22 on Monday. In overnight trading it rose 0.23% to $119.51.

why it matters

The share sale dilutes existing shareholders, while the new notes add to Oracle's debt load and to the supply of corporate debt. Investors will watch the scale of the capital raised and how the company deploys it, given the large capital expenditures listed among its uses.

market impact

Oracle shares: new stock dilutes existing holders, pressure on the price. Oracle bonds: more corporate debt supply.

• ▼ORCL shares pressure down — new shares from the stock offering dilute existing shareholders
• ▼Oracle bonds pressure down — ten billion dollars of new senior notes add to supply and debt load

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