Oracle Corporation 8-K

Summary

Oracle established an at-the-market (ATM) equity program of up to $20.0B and completed a $25B principal debt offering. The ATM gives Oracle discretion to sell shares over time; debt proceeds are for general corporate purposes, potentially including capital expenditures, debt repayment, investments or acquisitions, dividends, and share repurchases.

Key Figures

• ATM program: up to $20.0B in common stock sales; sales-agent commissions are up to 0.50% of gross proceeds. Oracle is not obligated to sell shares and may suspend sales at any time.
• Debt issued: $25B aggregate principal—$0.5B floating-rate notes due 2029; $3.0B at 4.550% due 2029; $3.5B at 4.950% due 2031; $3.0B at 5.350% due 2033; $5.0B at 5.700% due 2036; $2.25B at 6.550% due 2046; $5.0B at 6.700% due 2056; and $2.75B at 6.850% due 2066.

Investor Takeaways

• Future ATM sales are optional; the amount and timing of any share issuance will determine the resulting dilution.