Oracle begins $20B stock and bond sales for AI data centers
Oracle began marketing $10 billion of investment-grade bonds alongside a separate $10 billion common-stock offering, according to a filing with the US Securities and Exchange Commission. The bond sale comprises one floating-rate tranche and five fixed-rate tranches. The preliminary filing did not specify interest rates or allocations among the tranches. Oracle said proceeds may be used for general corporate purposes, including capital expenditure, debt repayment, acquisitions, dividends and share buybacks. The financing is intended to support data-center expansion for AI customers.
The financing provides debt and equity capital for Oracle's AI data-center expansion, a major part of the company's infrastructure spending.
Oracle began marketing $10bn in investment-grade bonds on Monday, alongside a separate $10bn share offering, according to a filing with the US Securities and Exchange Commission.
The bond sale is divided into six tranches. One carries a floating interest rate and matures in 2029. The other five have fixed rates, with maturities in 2029, 2031, 2033, 2037 and 2046.
The preliminary filing did not specify the interest rates or the amount allocated to each tranche. BofA Securities is leading the bond sale, with Wells Fargo, Citigroup, JPMorgan and Deutsche Bank among the other banks involved.
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