Oracle’s new bonds have tightened by as much as 23bps in the secondary market after issuing new debt at record high levels on Monday (2 November).
The $10bn deal came as a surprise to investors after Oracle changed its capital markets guidance the week prior at its 28 October investor day event. The company paid up for it with some of the highest yields and spreads on offer ever from a Baa2/BBB-/BBB rated company, according to 9fin data.
Oracle’s 20-year debt has a coupon of 8.65% at an issuance spread of T+335bps, which is some 50bps wide of average junk yields.
However, maybe those levels are now wide enough to justify some additional investor interest. All five tranches of the new notes are indicated inside their pricing levels on Wednesday, according to Solve data. The belly of the curve is performing the best with Oracle’s 2033s 23bps tighter from pricing, while the 2031s have moved the least at 5bps.
The story is similar for Meta’s issuance, which is also tightening in the secondary after pricing $15bn on Tuesday and another €9bn in euros on Wednesday, despite pricing at spreads that are more than 100bps tight to...
