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Oracle prices $20B equity-and-bond raise: 86.2M shares at $116, an 11.2% discount to Friday's close
What happened
Oracle released full pricing for its $20 billion capital raise late Monday, November 2. It will sell 86.2 million shares at $116 each — an 11.2% discount to Friday's $130.67 closing price — raising about $9.9 billion net and adding ~2.9% to the share count. It also priced $10 billion of senior notes across five tranches: $2B of 7% notes due 2029, $1.75B of 7.45% due 2031, $2.25B of 7.85% due 2033, $2.5B of 8% due 2037, and $1.5B of 8.65% due 2046. Both offerings are expected to close on Wednesday, November 4. Proceeds are for general corporate purposes including capex, debt repayment, acquisitions, dividends, and buybacks.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- ORCL — the priced discount crystallizes ~2.9% share dilution and the 7-8.65% coupons signal rising funding costs; shares traded near the $116 offer price premarket Tuesday, down from Friday's $130.67
- AI-infrastructure/semiconductor supply chain — confirms hyperscalers continue paying high borrowing costs to keep the AI buildout funded