Key points
- Oracle's new bonds priced at 240 to 335 basis points over Treasuries
- Oracle's 2046 spread nearly doubled from February
- Oracle's shortest new bond pays more than Microsoft's longest
Oracle (ORCL) sold $10 billion of bonds on November 2 at spreads of 2.40 to 3.35 percentage points over U.S. Treasuries, according to its final term sheet. Both ends of the range were higher than in any of Oracle's three bond sales since January 2025, according to our AI debt tracker.
The spread is the extra yield investors receive over a comparable Treasury. Oracle's new notes due in 2046 priced at 335 basis points over Treasuries, up from 170 basis points on notes with the same maturity issued in February. A basis point is one-hundredth of a percentage point.
A wider spread can reflect greater perceived risk, as well as differences in the bonds and market conditions. S&P lowered Oracle's credit rating one notch between the two sales, from BBB to BBB-, its lowest investment-grade rating, according to the term sheets.
Oracle's spread ranges rose with each sale
| Oracle bond sale | Spread over Treasuries | Coupons |
|---|---|---|
| Jan. 2025, $7.75B | +57 to +135 bp | 4.8% to 6.125% |
| Sept. 2025, $18B | +75 to +137 bp | 4.45% to 6.1% |
| Feb. 2026, $25B | +95 to +195 bp | 4.55% to 6.85% |
| Nov. 2026, $10B | +240 to +335 bp | 7.0% to 8.65% |
Oracle's notes due in 2029 also show the change: they priced at 240 basis points over Treasuries, compared with 95 basis points on notes due the same year that were issued in February.
The new notes carry coupons of 7.0% to 8.65% across five series maturing from 2029 to 2046. Together they'll cost Oracle about $777 million a year in interest, by our calculations. The term sheet lists expected ratings of Baa2 from Moody's, with a negative outlook, BBB- from S&P, and BBB from Fitch. BBB- is S&P's lowest investment-grade rating.
Microsoft's longest bond pays less than Oracle's shortest
Microsoft (MSFT) sold $25 billion of bonds on October 29 at spreads of +25 to +105 basis points, according to its term sheet. Its longest bond, due in 2066, pays 6.35%. Oracle's shortest new bond, due in 2029, pays 7.0%.
The other big tech borrowers on our tracker paid less too. Alphabet's $25 billion sale in August priced at +33 to +130 basis points, Amazon's $25 billion sale in July at +40 to +125, and Meta's $25 billion sale in April at +53 to +147.
Oracle's coupons are now closer to what SoftBank and CoreWeave have paid. SoftBank's $11.1 billion bond sale in September carried coupons of 7.125% to 9.75%. CoreWeave's two series of notes in June paid 8.5% to 9.625%.
Oracle is raising money on both sides at once
The bonds came alongside a $10 billion stock offering that hadn't priced as of 7 p.m. ET on November 2. Five days earlier, Oracle had capped its new capital-market fundraising through fiscal 2030 at $20 billion. It said it currently expects that to be $10 billion in stock and $10 billion in gross debt, as we reported on the two offerings.
We compared Oracle's debt with CoreWeave's in September. Our tracker also lists the construction loans tied to Oracle's data center leases in Texas, Wisconsin, and New Mexico. That borrowing sits with developers and lenders rather than with Oracle itself.
