Oversubscribed Oracle jumbo attracts $12bn
The biggest offering from a corporate borrower in three months got the week in US debt off to a roaring start. A2/A/A rated Oracle, the world’s second largest software maker, issued $3.25bn of bonds in a 10s/30s offering on Monday that was nearly four times covered. With no comparable deals in the market, the order book swelled to more than $12bn from 400 accounts, spread equally across the two tranches.
Whispers were initially in the Treasuries plus 100bp area on the 10 year tranche and "mid-100s" on the 30 year tranche, with a 50bp 10s/30s curve. Subsequently, official price guidance was announced at plus 90bp area and plus 145bp area.
The $1bn and $2.25bn deals were printed at 85bp
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