Business Context and Reporting Period
This Form 8-K Current Report was filed by Oracle Corporation on April 2, 2008, regarding an event expected to occur on April 9, 2008. The filing details the planned issuance of corporate debt securities.
Key Financial Metrics
The filing announces the issuance of $5.00 billion in principal amount of Notes. The specific tranches are:
- $1.25 billion of 4.950% Notes due 2013
- $2.50 billion of 5.750% Notes due 2018
- $1.25 billion of 6.500% Notes due 2038
The filing text does not provide clear values for revenue, profit, cash flow, margins, existing debt levels, or liquidity ratios.
Material Changes
The primary material change is the expansion of Oracle's debt capital structure through the new $5.00 billion offering. The Notes are being issued pursuant to an Indenture dated January 13, 2006, as amended by a First Supplemental Indenture dated May 9, 2007.
Guidance, Outlook, and Risks
Management commentary is limited to the execution of the underwriting agreement dated April 2, 2008, with Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. Incorporated as representatives. The filing does not provide specific guidance, outlook, or a discussion of risks and contingencies beyond the standard terms of the debt issuance.
Investor Verification Checklist
- Confirm the final closing date of the $5.00 billion Notes issuance (expected April 9, 2008).
- Review the Form of Officers' Certificate (Exhibit 4.09) for specific covenants and redemption terms.
- Verify the use of proceeds from the offering in subsequent financial reports.
- Check the impact of the new debt on the company's overall leverage ratios in the next quarterly filing.