Oracle Reportedly Seeks To Raise $15 Bln In Bond Sales

(RTTNews) - Oracle Corp. (ORCL) is seeking to borrow $15 billion from the US investment-grade bond market, according to Bloomberg News.

The software giant plans to sell debt in up to seven parts, including a rare 40-year bond.

Initial price discussions for that portion of the deal are in the area of 1.65 percentage points above similarly dated Treasuries. This marks Oracle's first debt sale since January.

The deal comes as Oracle takes on major cloud infrastructure projects for major tech clients like OpenAI and Meta Platforms Inc., a move that's pushing its costs higher. In the coming years, the company expects to inject hundreds of billions of dollars into renting and powering the data centers needed to support this growth.

Oracle's cash flow flipped negative this year for the first time since 1992. Analysts anticipate the metric will be in free fall over the coming years before returning to positive in 2029.

Proceeds from the bond sales could be used for general corporate purposes, which may include stock repurchases, repayment of debt and acquisitions, the company said.