Oracle Corp., the largest maker of database software, is planning to sell benchmark securities in its first dollar-denominated offering this year.
The company may sell 5.5-year, floating-rate bonds and 5.5- and 10-year fixed-rate debt, according to a person with knowledge of the transaction. The bonds may be rated A1 by Moody’s Investors Service.
Oracle last sold dollar debt in October, raising $2.5 billion each of 1.2 percent, five-year securities to yield 45 basis points more than similar-maturity Treasurys and 2.5 percent, 10-year debt at a spread of 68 basis points, according to data compiled by Bloomberg. The bonds due 2022 traded at 92.1 cents on the dollar to yield 3.51 percent yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Proceeds will be used for general corporate purposes, which may include stock repurchases, dividend payments and future acquisitions, said the person, who asked not to be identified because terms aren’t set. Bank of America Corp., Credit Suisse Group AG and HSBC Holdings Plc are managing the offering for the Redwood City, California-based company.
Oracle is offering the debt after companies sold $55.5 billion of notes in the U.S. last month, the slowest period in 18 months, according to data compiled by Bloomberg. Yields on dollar-denominated bonds rose to 4.25 percent yesterday from an all-time low of 3.35 percent on May 2, according to the Bank of America Merrill Lynch U.S. Corporate & High Yield index.
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