Oracle Raises Cash With Bond Sale

Business software developer Oracle is seeking to raise $3.25 billion worth of finance with a two-part sale of bond notes that began on Monday, The Wall Street Journal reports.

The sale of bond notes, which is to be completed on 19 July 2010, will consist of $1 billion notes due for repayment in 2020, and $2.25 billion due to be repaid in 2040, the company said in a in a press release on Market Watch.

Oracle said that the 2020 Notes will bear interest at 3.875 per cent a year, and the 2040 Notes will have an interest rate of 5.375 per cent.

Interest will be paid semi-annually for the 2020 notes, on 15 January and 15 July, and annually from 15 January 2011 for the 2040 Notes.

The company is planning to the use the money to clear its indebtness, which includes the repayment of 5 per cent senior notes due in January 2011, as well as raising funds for future acquisitions and corporate operations around the globe.