Filings: Oracle is selling $10B in common stock and $10B in bonds, as it rushes to line up financing to pay for its data center buildout; ORCL falls 5%+ (Kelly Cloonan/Wall Street Journal)
The software company is selling $10 billion in common stock and $10 billion in bonds — Oracle plans to raise $20 billion in debt …
Oracle intends to raise $20 billion through the issuance of bonds and new shares, according to regulatory filings released on Monday. This move is part of the company's efforts to fund expensive artificial intelligence and cloud infrastructure projects. Following the announcement, Oracle's shares experienced a 3.5% decrease in premarket trading.
The company stated that the funds will be utilized for general corporate purposes, which may encompass capital expenditures, debt reduction, acquisitions, dividends, and share buybacks. Earlier this week, Oracle disclosed that it anticipates capital spending to reach its maximum level during the current fiscal year and the subsequent one, as they expand their cloud computing capabilities.
However, the company has pledged not to seek more than $20 billion in additional financing for AI initiatives through the fiscal year 2030.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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