Oracle Corp. is seeking to raise $10 billion from a US dollar bond sale, just days after revealing fresh capital expenditure plans to fund its investments in artificial intelligence infrastructure. The company is marketing the debt in six tranches, with maturities ranging from two to 20 years, according to a person familiar with the matter. Initial price talk on the longest tenor is a spread of about 3.6 percentage points above Treasuries, the person added, asking not to be identified because they are not allowed to speak publicly.
The move comes after Oracle said last week it would limit gross debt growth to $10 billion through fiscal 2030. In February, the company said it didn't expect to issue additional bonds in 2026 beyond a $25 billion transaction completed that month. The offering, just a few days after Microsoft Corp. ended a nearly three-month drought in Big Tech bond issuance, comes as debt buyers have demanded higher premiums to take on, and paid up to protect themselves against, the risk of firms tied to the AI investment boom.
Companies including Oracle have flooded the market with hundreds of billions of dollars in borrowing to fund new data centers and chip purchases since last year, raising questions about whether the spending will pay off.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing