This article first appeared on GuruFocus .
Oracle Corporation ( NYSE:ORCL ) fell 3.21% in premarket after it filed to raise $20 billion through a $10 billion note sale and a concurrent $10 billion common stock offering.
The notes come in six tranches, from floating-rate paper due 2029 out to fixed-rate notes due 2046, with BofA Securities as global coordinator. Neither offering is conditioned on the other closing. Oracle said the proceeds would go to general corporate purposes, which can include capital spending, debt repayment, acquisitions, dividends and buybacks.
The raise lands on top of $125.3 billion of total debt as of August 31. Oracle also had another $19.7 billion it could draw under its revolving credit facility and commercial paper program. This is its second major trip to market this year. In February, it sold $25 billion of bonds, completed a $5 billion mandatory convertible preferred offering and set up a $20 billion at-the-market stock program. Oracle also told investors last week that capital spending should peak this fiscal year and next, which suggests the funding need runs at least into fiscal 2028.
