- The deal priced at a steep discount. Oracle sold 86.2 million shares at $116 apiece, raising $9.9 billion, according to a statement late Monday reported by Bloomberg. That compares with Friday’s close of $130.67 before the deal was unveiled, an 11% discount.
- Debt came with it. Oracle also sold $10 billion of bonds on Monday in five tranches with maturities ranging from three to 20 years. Bank of America led both the stock and bond transactions, according to the filings.
- Investors still showed up. The offering attracted demand well above the amount sought ahead of pricing after being confidentially marketed to selected existing investors, sovereign wealth funds and long-only investors, Bloomberg reported.
- Combined, the two deals bring in roughly $19.9 billion in fresh capital (Lumida calculation: $9.9 billion of stock plus $10 billion of bonds).
What Happened?
Oracle priced the share sale after its stock was hit in a choppy session to start the week. The company has raised billions of dollars this year by selling shares to diversify the sources of capital funding its massive spending on artificial intelligence infrastructure. The race for cash comes as Anthropic prepares a potentially record-setting IPO and follows blockbuster share sales by Intel, Alphabet and Meta Platforms, according to Bloomberg.
Why It Matters?
An 11% discount is a high price for one of the largest AI infrastructure builders, and it shows that even investment-grade companies are paying up to fund the buildout. Pairing equity with debt reduces Oracle’s reliance on borrowing at a time when credit investors are increasingly worried about concentration risk in AI-linked lending, but it dilutes existing shareholders. The strong demand suggests large institutions are still willing to fund AI capacity at the right price.
What’s Next?
Watch how Oracle shares trade relative to the $116 offer price, which often acts as a reference point after a big discounted sale. Investors will also track how the new bonds perform in the secondary market and whether other AI spenders follow with similar combined stock and bond deals, especially ahead of Anthropic’s planned IPO later this month.
Affected Tickers and Coins: ORCL, BAC, LQD
Source: Bloomberg
