Followers | 679 |
Posts | 140793 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, November 08, 2022 4:07:48 PM
By: Bloomberg | November 7, 2022
Oracle Corp. is the latest company to seize the moment in a credit market recovery, bringing a $7 billion bond sale to help fund its acquisition of medical-records systems provider Cerner Corp.
The software-maker sold bonds in as many as four parts, according to a person with knowledge of the matter. The longest portion of the offering, a 30-year note, yields 2.55 percentage points above Treasuries after earlier discussions of about 3.1 percentage points, said the person, who asked not to be identified as the details are private.
Oracle announced, along with the bond sale, that it also increased its previous $4.4 billion term loan by $1.3 billion. The added proceeds will help pay down a bridge loan used to fund the acquisition of Cerner, according to a filing.
The Cerner acquisition was originally funded with about $15.7 billion of so-called bridge loan debt provided by a group of banks. Such debt is typically refinanced into longer-term bonds and loans. Oracle later borrowed about $4.4 billion through a term loan agreement, using that to reduce the bridge facility.
The proceeds of the bond sale will prepay borrowings under the bridge deal. With the bond sale and the added proceeds of the term loan, there’s about $3 billion left to fund in the bond market from the bridge loan.
Austin, Texas-based Oracle originally agreed to buy Cerner for $28 billion in December, in an all-cash deal that would broaden its customer base within the health-care industry and bolster its cloud-computing and database businesses.
“Today’s Oracle deal has been anticipated for months, and we expect healthy participation from the buyside even though it’s a company that has been remarkably inattentive to maintaining its credit rating profile,” said Baylor Lancaster-Samuel, vice president of fixed income at Amerant Investments Inc., in an emailed response to questions.
“As recently as 2020, Oracle was rated high A and with the Cerner deal, there was some threat that Oracle could flirt with a BBB- rating at the lowest rung of investment grade,” she said.
Fitch Ratings downgraded Oracle to BBB from BBB+ on Monday. It assigned a BBB score to the new unsecured notes, as did S&P Global Ratings.
Citigroup Inc., Bank of America Corp., Goldman Sachs Group Inc., HSBC Holdings Plc and JPMorgan Chase & Co. are managing Oracle’s bond sale, the person said.
Oracle is one of 15 companies that sold investment-grade debt on Monday, marking the busiest day in that market by number of deals since the days following Labor Day in September.
Firms have been taking advantage of the ease in credit market volatility in recent weeks to launch new deals. Last week, several banks used the window to offload some of their most risky buyout and acquisition debt.
On Friday, Canada’s Open Text Corp. kicked off a roughly $3.1 billion leveraged loan sale to help finance its purchase of British software business Micro Focus International Plc. Earlier that same week, banks launched a $2.4 billion debt sale to help fund Apollo Global Management Inc.’s buyout of auto-parts maker Tenneco Inc., which the group had previously resigned to funding itself.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent ORCL News
- Oracle Protects Healthcare Customers Against Cyberattacks • PR Newswire (US) • 04/23/2024 08:15:00 PM
- Major Global Businesses Adopt Oracle Database@Azure Worldwide • PR Newswire (US) • 04/23/2024 12:00:00 PM
- Oracle Helps Healthcare Organizations Solve Critical Supply Chain, HR, and Finance Challenges • PR Newswire (US) • 04/23/2024 12:00:00 PM
- Auxilio Mutuo Hospital Selects Oracle Health's EHR to Improve Patient Experience • PR Newswire (US) • 04/22/2024 12:15:00 PM
- Oracle Cloud Secret Impact Level 6 Regions for U.S. Department of Defense • PR Newswire (US) • 04/22/2024 12:00:00 PM
- Oracle Cloud Service Enables Banks to Manage Climate Change Risk Across Portfolios • PR Newswire (US) • 04/22/2024 12:00:00 PM
- Oracle and Reka Collaborate to Advance AI Innovation • PR Newswire (US) • 04/18/2024 12:00:00 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Oracle to Invest More Than $8 Billion in Cloud Computing and AI in Japan • PR Newswire (US) • 04/18/2024 01:00:00 AM
- Oracle Named a Leader in 2024 Gartner® Magic Quadrant™ for Transportation Management Systems for 17th Time • PR Newswire (US) • 04/10/2024 12:00:00 PM
- New Oracle AI-powered Cloud Service Helps Banks Mitigate Anti-Money-Laundering Risks • PR Newswire (US) • 04/08/2024 12:00:00 PM
- Oracle and Palantir Join Forces to Deliver Mission Critical AI Solutions to Governments and Businesses • PR Newswire (US) • 04/04/2024 12:00:00 PM
- Gas South Fuels Customer Experience with Oracle Cloud • PR Newswire (US) • 03/25/2024 12:00:00 PM
- Round Rock Independent School District Police Department Deploys Oracle Public Safety Suite to Enhance Incident Response Capabilities • PR Newswire (US) • 03/21/2024 12:00:00 PM
- Oracle Releases Java 22 • PR Newswire (US) • 03/19/2024 01:30:00 PM
- Administrative Office of the United States Courts (AOUSC) selects Oracle as Cloud Service Provider • PR Newswire (US) • 03/19/2024 12:00:00 PM
- AI Innovators Flock to Oracle to Address Some of the World's Most Pressing Challenges • PR Newswire (US) • 03/18/2024 10:00:00 PM
- Oracle and NVIDIA to Deliver Sovereign AI Worldwide • PR Newswire (US) • 03/18/2024 10:00:00 PM
- Fisker’s Shares Take a Hit Amid Speculation of Bankruptcy, Altria Divests from AB InBev to Fund Stock Repurchase Initiative • IH Market News • 03/14/2024 11:39:32 AM
- Oracle Helps Organizations Build Smart and Efficient Operations • PR Newswire (US) • 03/14/2024 08:00:00 AM
- Microsoft and Oracle expand partnership to satisfy global demand for Oracle Database@Azure • PR Newswire (US) • 03/14/2024 08:00:00 AM
- AI-Powered Analytics Help Oracle Fusion Applications Customers Achieve Better Business Outcomes • PR Newswire (US) • 03/14/2024 08:00:00 AM
- Oracle Adds New Generative AI Capabilities to Oracle Fusion Cloud Applications Suite • PR Newswire (US) • 03/14/2024 08:00:00 AM
- Oracle Helps Organizations Effectively Manage Sustainability Initiatives • PR Newswire (US) • 03/14/2024 08:00:00 AM
- Arkansas Heart Hospital Extends Oracle Health EHR and Patient Accounting Across Its Network • PR Newswire (US) • 03/13/2024 04:16:00 PM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM