NEW YORK, June 30 (IFR) - Oracle Corp on Monday launched a
US$10 billion seven-part bond offering to finance its pending
acquisition of Micros Systems and potential share buybacks as it
looks to boost growth.
The launch levels on the trade, which was due to price later
in the day, tightened from initial price thoughts put out on
The US$1bn 3-year floating-rate note was launched at 3-month
Libor plus 20 basis points (bp), tighter from 3mL+30, while the
$US750m 5.25-year floater was launched at 3mL+51.
On the fixed-rate pieces, the US$2bn 5.25-year launched at
Treasuries plus 65bp (from T+70bp); the US$1.5bn 7-year at T+70
(from T+85); the US$2bn 10-year at T+90 (from T+100-105); the
US$1.75bn 20-year at T+95 (from T+105) and the $1bln 30-year at
T+115 (from T+125 area).
Oracle, the world's number two business software maker,
announced it was buying Micros Systems last week.
The purchase of Micros, which makes point-of-sale hardware
and software for restaurants and hotels, is the first
multi-billion dollar acquisition by Larry Ellison's Oracle in
five years and follows disappointing fourth-quarter results.
The borrower is rated A1 by Moody's and A+ by S&P and Fitch.
Some of the proceeds will be use to repay the company's 3.75%
senior notes maturing July 2014.
Oracle was last in the bond market in July 2013 with a
triple-tranche issue that raised US$3bn, according to IFR data.
(Reporting by John Balassi; Editing by Marc Carnegie)