Oracle set prices for a $20 billion stock and senior-note sale Monday, Nov. 2, giving investors final terms for financing tied to its fiscal 2027-30 investment cycle.
Oracle priced 86,206,897 common shares at $116 apiece and expects about $9.9 billion in proceeds after underwriting discounts and estimated expenses. The offer is 11.2% below the $130.67 New York Stock Exchange closing price on Friday, Oct. 30, listed in Oracle’s preliminary stock prospectus. The company estimates net proceeds from the notes at about $10 billion.
Five fixed-rate note series make up the debt sale: $2 billion due in 2029 at 7.000%; $1.75 billion due in 2031 at 7.450%; $2.25 billion due in 2033 at 7.850%; $2.5 billion due in 2037 at 8.000%; and $1.5 billion due in 2046 at 8.650%, according to Oracle’s pricing announcement.
If the offerings are completed, Oracle said the proceeds would be available for general corporate purposes. Possible uses include project spending, debt reduction, investments or acquisitions, dividend payments and stock buybacks. In its preliminary prospectus, the company also cautioned that sizeable future share sales could put pressure on its stock price.
The pricing advances Oracle’s earlier plan for $20 billion in stock and bond offerings. In a release Wednesday, Oct. 28, Oracle set a $20 billion ceiling on new capital-market financing during its fiscal 2027-30 investment period, with refinancing outside the limit. At the time, it expected equity and gross debt to account for $10 billion each. A separate $20 billion at-the-market equity raise had been completed in fiscal 2027’s first quarter.
Oracle expects vendor financing, hardware provided by customers and advance customer payments to ease near-term cash needs as it works toward positive free cash flow. Both offerings are expected to close Wednesday, Nov. 4, subject to customary conditions; Oracle said either can close without the other.
