Oracle Set to Price $10 Billion Share Sale at 11% Discount, Targeting $116 Per Share

Deep News
10小時前

Oracle is reportedly preparing to issue $10 billion worth of stock at an 11% discount, with shares expected to be priced at $116 each.

On Monday, Oracle launched a $20 billion combined equity and debt financing effort to raise funds for its AI spending. The company is pushing ahead with plans to fund artificial intelligence investments even as growing signs suggest asset managers are uneasy about the enormous spending by technology companies.

In separate filings, Oracle said it is issuing $10 billion in investment-grade bonds and a comparable amount of common stock. Oracle stated that the proceeds will be used for general corporate purposes, which may include capital expenditures and dividend payments.

The move comes just days after Oracle unveiled a long-term financing plan to raise capital for its heavy AI investments. That news had briefly eased investor concerns about whether its AI infrastructure spending would generate returns.

According to a person familiar with the matter, Oracle's bond offering is divided into six tranches with maturities ranging from three to 20 years. The person requested anonymity because they were not authorized to speak publicly.

The person said the longest-dated tranche was initially guided at about 3.6 percentage points above U.S. Treasury yields.

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