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BusinessQuiet 10d · day 11

Oracle launches $10B bond sale after capping total new debt at $20B

The software giant is raising capital to fund AI infrastructure while pledging spending discipline through fiscal 2030.

newest coverage 10d agosummary written 10d ago9 pieces1 likes & upvotes NewswiresMastodonGoogle NewsReddit

What to know

  • Oracle is raising $10 billion through a bond offering with six tranches while capping total new debt at $20 billion through fiscal 2030.
  • The company is funding a massive AI and cloud infrastructure buildout aimed at tripling revenue to over $225 billion by fiscal 2030.
  • Oracle expects to turn free cash flow positive by H2 2028 after capital spending peaks this year and next.
  • Stock fell 6% on the announcement, extending a 33% annual decline, as investors worry about Oracle's AI spending relative to its revenue scale versus rivals like Microsoft and Amazon.

“Oracle has committed to limit new capital markets funding to $20 billion through fiscal 2030, with $10 billion expected in debt”

Quartz · Quartz ↗

Oracle Corp. Software and cloud infrastructure companyHilary Maxson Oracle CFO

Oracle launches $10B bond sale after capping total new debt at $20B
Channel News Asia

How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts

Peak 6 pieces in 3h at Nov 2, 7 AM; 9 pieces over 11 days (7 articles · 2 posts) Nov 2, 7 AM — 6 pieces · 6 articles — Newswires 6Nov 2, 10 AM — quietNov 2, 1 PM — 1 piece · 1 post — Mastodon 1Nov 2, 4 PM — 2 pieces · 1 article · 1 post — Google News 1, Reddit 1Nov 2, 7 PM — quietNov 2, 10 PM — quietNov 3, 1 AM — quietNov 3, 4 AM — quietNov 3, 7 AM — quietNov 3, 10 AM — quietNov 3, 1 PM — quietNov 3, 4 PM — quietNov 3, 7 PM — quietNov 3, 10 PM — quietNov 4, 1 AM — quietNov 4, 4 AM — quietNov 4, 7 AM — quietNov 4, 10 AM — quietNov 4, 1 PM — quietNov 4, 4 PM — quietNov 4, 7 PM — quietNov 4, 10 PM — quietNov 5, 1 AM — quietNov 5, 4 AM — quietNov 5, 7 AM — quietNov 5, 10 AM — quietNov 5, 1 PM — quietNov 5, 4 PM — quietNov 5, 7 PM — quietNov 5, 10 PM — quietNov 6, 1 AM — quietNov 6, 4 AM — quietNov 6, 7 AM — quietNov 6, 10 AM — quietNov 6, 1 PM — quietNov 6, 4 PM — quietNov 6, 7 PM — quietNov 6, 10 PM — quietNov 7, 1 AM — quietNov 7, 4 AM — quietNov 7, 7 AM — quietNov 7, 10 AM — quietNov 7, 1 PM — quietNov 7, 4 PM — quietNov 7, 7 PM — quietNov 7, 10 PM — quietNov 8, 1 AM — quietNov 8, 4 AM — quietNov 8, 7 AM — quietNov 8, 10 AM — quietNov 8, 1 PM — quietNov 8, 4 PM — quietNov 8, 7 PM — quietNov 8, 10 PM — quietNov 9, 1 AM — quietNov 9, 4 AM — quietNov 9, 7 AM — quietNov 9, 10 AM — quietNov 9, 1 PM — quietNov 9, 4 PM — quietNov 9, 7 PM — quietNov 9, 10 PM — quietNov 10, 1 AM — quietNov 10, 4 AM — quietNov 10, 7 AM — quietNov 10, 10 AM — quietNov 10, 1 PM — quietNov 10, 4 PM — quietNov 10, 7 PM — quietNov 10, 10 PM — quietYesterday, 1 AM — quietYesterday, 4 AM — quietYesterday, 7 AM — quietYesterday, 10 AM — quietYesterday, 1 PM — quietYesterday, 4 PM — quietYesterday, 7 PM — quietYesterday, 10 PM — quietToday, 1 AM — quietToday, 4 AM — quietToday, 7 AM — quietToday, 10 AM — quietToday, 1 PM — quietToday, 4 PM — quietToday, 7 PM — quiet ◂ 1 earlier2
Nov 3Nov 4Nov 5Nov 6Nov 7Nov 8Nov 9Nov 10yesterdaynow · 8:28 PM ET
  1. 2

    Oracle stock falls 6% on bond announcement, extends 33% annual decline

    Shares fell nearly 6 percent on the announcement, extending a roughly 33 percent decline for the year through Friday. Oracle's existing 6.85 percent bonds due in 2066 fell more than 1.2 cents on the dollar following the news.

    1. 4 outlets Oracle to offer $10 billion in bonds

      first by Channel NewsAsia, 10d ago · also Quartz, Bloomberg, Bloomberg Markets

      2 more headlines
  2. 1

    Oracle plans to turn free cash flow positive by H2 2028

    CFO Hilary Maxson said Oracle expects free cash flow to turn positive in the second half of fiscal 2028, while capital spending is expected to peak in the current fiscal year and next. The company targets revenue exceeding $225 billion and adjusted earnings topping $21 per share by fiscal 2030.

    “Oracle Corp. kicked off a $10 billion sale of US investment grade bonds on Monday, according to a person familiar with the matter, after the company said last week it would undertake just $20 billion of additional capital raises the next several years.”
    — Bloomberg · source
  3. background

    Oracle confirms $20 billion capital raise cap through fiscal 2030 — Regulatory filings showed Oracle will raise no more than $20 billion in additional financing for AI through fiscal 2030, with $10 billion expected in debt. The company said it would use proceeds for general corporate purposes including capital spending, debt repayment, acquisitions, dividends, and share buybacks.

  4. background

    Oracle launches $10 billion bond offering with six tranches — Oracle kicked off a $10 billion sale of US investment-grade bonds comprising six tranches maturing between 2029 and 2046, including one floating-rate and five fixed-rate tranches. Interest rates and prices have not been set.