Oracle Prices $20 Billion Equity And Bond Raise, Coupons Reach 8.65%

Summary

• Oracle priced a $10 billion share sale and $10 billion in senior notes on November 2, 2026.
• Shares went at $116.00 each; five bond tranches carry coupons from 7.000% to 8.650%.
• The pricing sets a market benchmark for what cloud infrastructure debt now costs.

The latest

Oracle priced a combined $20 billion capital raise, selling 86,206,897 common shares at $116.00 apiece alongside five tranches of senior notes carrying coupons between 7.000% and 8.650%. The company said net proceeds should reach roughly $9.9 billion from the equity leg and about $10.0 billion from the notes. Both offerings are expected to close on November 4, 2026.

Details

• The equity leg: Oracle, listed on the New York Stock Exchange under ORCL and headquartered in Austin, Texas, priced an underwritten public offering of 86,206,897 common shares at $116.00 each, for gross proceeds near $10.0 billion. The shares carry a par value of $0.01. Estimated net proceeds after underwriting discounts and expenses: about $9.9 billion.
• The bond tranches: The $10.0 billion senior notes offering splits into five maturities: $2.00 billion at 7.000% due 2029; $1.75 billion at 7.450% due 2031; $2.25 billion at 7.850% due 2033; $2.50 billion at 8.000% due 2037; and $1.50 billion at 8.650% due 2046.
• The cost curve: The spread between the shortest and longest tranche runs 165 basis points, with the 2046 paper priced at 8.650% — the premium investors demanded to lend to an investment-grade cloud provider across a 20-year horizon.
• Use of proceeds: Oracle said the money is earmarked for general corporate purposes, which may include capital expenditures, repayment of debt, investments or acquisitions, and dividends or share repurchases. The company did not allocate a specific amount to any category, nor name a target for acquisitions.
• The timeline: Both offerings are expected to close on November 4, 2026, subject to customary closing conditions. Oracle said each may close independently of the other, meaning the equity sale is not conditioned on completion of the bond sale, or the reverse.
• The syndicate: BofA Securities acted as sole global coordinator. Joint bookrunners included Wells Fargo Securities, Citigroup, BNP Paribas, Deutsche Bank Securities, J.P. Morgan, PNC Capital Markets, Goldman Sachs, HSBC and SMBC Nikko — a nine-bank core reflecting the size of the raise.
• Additional managers: BTIG served as an additional bookrunner on the equity offering, U.S. Bancorp on the notes, and Lloyds Securities on the notes while also co-managing the share sale. Standard Chartered Bank was a co-manager on the bond offering only.
• The co-managers: Intesa Sanpaolo, Mizuho, MUFG, TD Securities, Santander, BNY Capital Markets, CIBC Capital Markets and ING were named co-managers, widening European, Japanese and Canadian distribution for the paper.
• The legal frame: Both offerings were made under an automatic shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission. Oracle said neither offering is made except by means of a prospectus supplement and accompanying prospectus. The announcement carried no executive comment.

Background

Oracle has been among the heaviest spenders in the cloud infrastructure buildout, a capital-intensive race that has pushed hyperscale providers toward large external financing rather than operating cash flow alone.

Between the lines

Raising equity and debt simultaneously, in equal $10 billion halves, spreads the cost between dilution and interest rather than leaning on either. The coupon ladder — 7.000% at the front, 8.650% at the long end — is the clearest public marker yet of what a major cloud provider pays to fund capital expenditure, and a reference point for Gulf investors pricing technology infrastructure debt.

What's next

Watch the November 4 closing of both offerings, whether either settles without the other, and how the 2046 notes trade against the 2029 tranche in the secondary market.

Source: Oracle (press release via PR Newswire)