Oracle Corp. (ORCL:US) plans to sell $5 billion of debt in two parts in its first bond offering in more than two years.
The world’s largest supplier of database software may sell $2.5 billion each of five-year securities to yield 45 basis points more than similar-maturity Treasuries and 10-year debt at a relative yield of 68 basis points, according to a person familiar with the transaction. The sale may be completed as soon as today.
Proceeds from the sale of the senior, unsecured securities will be used to refinance debt and for general corporate purposes, said the person, who asked not to be identified because the terms aren’t set.
The company last tapped the bond market with a new offering in July 2010, issuing $3.25 billion in a two-part sale.
The new bonds may be rated A1 by Moody’s Investors Service and an equivalent A+ at Standard & Poor’s, said the person. Citigroup Inc., JPMorgan Chase & Co., Royal Bank of Scotland Group Plc and Wells Fargo & Co. are managing the sale for the Redwood City, California-based company.
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