Oracle Prices $20 Billion Raise: 86.2 Million Shares at $116 and $10 Billion of Notes Paying 7% to 8.65%

ORCL priced the $20 billion of stock and debt it set out to raise on Monday. The company sold 86,206,897 common shares at $116.00 each and priced $10 billion of notes in five tranches: $2.0 billion of 7.000% notes due 2029, $1.75 billion of 7.450% notes due 2031, $2.25 billion of 7.850% notes due 2033, $2.5 billion of 8.000% notes due 2037 and $1.5 billion of 8.650% notes due 2046. Each offering is expected to close on November 4, and neither is contingent on the other.

The terms show what the raise cost. Reuters reported that the $116 price was an 11.2% discount to Friday's closing price, after the shares fell 8.8% to $119.22 on the fundraising announcement earlier Monday, taking their loss for the year to about 39%. The notes carry coupons of 7% to 8.65%, and Reuters said the final deal dropped a floating-rate tranche that Oracle had outlined in an earlier filing, while Oracle's existing 6.85% bonds due 2066 fell more than 1.2 cents on the dollar. Bloomberg had reported earlier on Monday that Oracle was offering $10 billion of dollar bonds, the same notes offering that has now priced.

Oracle said net proceeds, about $9.9 billion from the stock and about $10.0 billion from the notes, will be used for general corporate purposes, which may include capital expenditures, repayment of debt, investments or acquisitions, dividends and buybacks. Reuters framed the raise as funding Oracle's AI and cloud infrastructure build-out and noted that Oracle had $125.34 billion of notes payable and other borrowings as of August 31, against fiscal 2026 revenue of $67.36 billion. Reuters also reported that Oracle has pledged to raise no more than $20 billion in additional AI financing through fiscal 2030.

What to watch: settlement on November 4, how the new notes trade against Oracle's existing curve, and whether management stays within the stated financing ceiling as AI capital spending continues.