Oracle planned to raise $20 billion through bond and share sales
Oracle plans a $20 billion stock-and-bond raise to fund AI and cloud expansion, regulatory filings showed Monday. BigGo Finance reported the offering would include $10 billion each in common stock and senior notes. Oracle said proceeds would fund capital spending, debt repayment, acquisitions, dividends and buybacks; it had $125.34 billion in notes payable and other borrowings at August 31.
More context
Oracle plans to raise $20 billion through bond and share sales, regulatory filings showed Monday, as it finances its AI and cloud infrastructure expansion. BigGo Finance reported that the offering would comprise $10 billion in common stock and $10 billion in senior notes. The bond offering includes six tranches maturing from 2029 to 2046; interest rates, prices and the number of shares had not been set, Reuters reported. Oracle said it would use the proceeds for general corporate purposes, including capital spending, debt repayment, acquisitions, dividends and share buybacks. Reuters reported that Oracle shares fell 4% in premarket trading, while Invezz reported a decline of nearly 6% during Monday. The company had $125.34 billion in notes payable and other borrowings as of August 31. Last week, Oracle said it would cap additional AI financing at $20 billion through fiscal 2030.
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Reporting
- AOL (with Reuters) — Oracle taps investors for $20 billion to finance AI expansion - AOL
- TipRanks — Oracle Stock (ORCL) Trickles Down as Tech Giant Plans $20 Billion Fundraise for AI Buildout - TipRanks.com
- Reuters — Oracle taps investors for $20 billion to finance AI expansion
- BigGo Finance — Oracle Files to Sell $20 Billion in Stock and Bonds as AI Debt Concerns Weigh on Shares — BigGo Finance
- Invezz — Why is Oracle stock falling nearly 6% on Monday?
- sedaily.com — Oracle Credit Risk Eases on Borrowing Cap as Microsoft Bond Spreads Widen - Seoul Economic Daily
Verifier’s note
Reuters reports that Oracle plans to raise $20 billion through stock and bond sales to fund its AI and cloud buildout, and the same-day accounts from AOL, TipRanks, BigGo Finance, Invezz, and Seoul Economic Daily are consistent with that claim. The results do not contradict the proposed event.