Database software titan Oracle (NYSE: ORCL) has picked up $15 billion of additional long-term debt. Oracle will settle the debt offering on Wednesday, March 24.
The offering is underwritten by a group of five global money center banks. Upon closing, Oracle’s total long-term debt will rise from $63.5 billion to $78.5 billion. The company’s cash on hand will also jump from $22.3 billion to $37.3 billion. Oracle generated $12.1 billion of free cash flows over the last four quarters, to put these figures into perspective.
The additional debt is structured as six tranches of senior notes with due dates ranging from 2026 to 2061. The shortest-term papers come with an annual coupon rate of 1.65%, and the 2061 notes carry a 4.1% interest rate. The other tranches fall between these extremes.