The Pulse
Oracle Prices $20 Billion Stock and Bond Offering
Oracle priced a $20 billion stock-and-debt offering on November 2, with the stock sale and five note tranches expected to close November 4. The financing follows Oracle’s October 28 plan to limit additional capital-market funding for its fi
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Oracle priced a $20 billion stock-and-debt raise on November 2, days after telling investors it would limit additional capital-market funding for its fiscal 2027–2030 investment cycle to the same amount. The deal splits that funding between roughly $10 billion in shares and $10 billion in senior notes. Oracle said a separate $20 billion at-the-market share sale completed in the first quarter of fiscal 2027 is in addition to the limit.
A $20 Billion Deal Fits Oracle’s New Cap
At its October 28 Investor Day, Oracle said the $20 billion limit for additional funding through fiscal 2030 excluded refinancing existing debt and was expected to comprise $10 billion in equity and $10 billion in gross debt. The newly priced offerings match those two amounts. The company’s announcement does not describe the financing as exceeding that limit.
A preliminary prospectus filed with the Securities and Exchange Commission describes the $10 billion common-stock offering and says Oracle is concurrently offering $10 billion in senior notes under a separate prospectus supplement. Oracle says proceeds from both offerings may go toward capital expenditures, debt repayment, investments or acquisitions, dividends, or share repurchases. The filing does not earmark the money for a particular project.
Oracle Sets the Shares at $116
The stock offering covers 86,206,897 shares at $116 each, for about $10 billion before underwriting discounts and expenses. Oracle expects net proceeds of about $9.9 billion from the shares. The preliminary prospectus lists $130.67 as the last reported share price on October 30.
Oracle’s pricing announcement says the stock sale and the note offering are each expected to close on November 4, subject to customary conditions. Neither transaction depends on the other closing. That means one could proceed even if the other does not.
Five Note Series Run Through 2046
The $10 billion debt sale comprises five series of senior notes: $2 billion due in 2029 at 7.000%, $1.75 billion due in 2031 at 7.450%, and $2.25 billion due in 2033 at 7.850%. The remaining tranches are $2.5 billion due in 2037 at 8.000% and $1.5 billion due in 2046 at 8.650%. Oracle expects approximately $10 billion in net proceeds from the notes after discounts and estimated expenses.
Funding a Longer Infrastructure Buildout
Oracle’s October guidance places the raise within a multiyear investment cycle. The company expects capital spending to peak in fiscal 2027 and 2028, then decline in fiscal 2029; it forecasts positive free cash flow in the second half of fiscal 2028 and at least $30 billion for fiscal 2029. Those are company projections, not results secured by the offering.
The pricing announcement identifies general corporate purposes as the use for proceeds, while Oracle’s recent guidance connects its broader funding needs to investment and growth. The immediate terms are specific: 86,206,897 shares at $116, alongside five note tranches totaling $10 billion, with both offerings expected to close November 4.