Oracle gets $3 billion five-year multicurrency revolver

By Angela McDaniels

Tacoma, Wash., April 26 - Oracle Corp. entered into a $3 billion revolving credit facility due April 20, 2018 on April 22, according to an 8-K filing with the Securities and Exchange Commission.

Up to $1 billion of the revolver can be borrowed in currencies other than dollars.

The revolver has a $2 billion accordion feature.

The interest rate is Libor plus the market rate spread, which is the company's 30-day moving average credit default swap mid-rate spread. The market rate spread is subject to a floor of 10 basis points to 30 bps and a ceiling of 75 bps to 112.5 bps. The exact floor and ceiling depend on the company's ratings.

The commitment fee is 5 bps to 10 bps depending on ratings.

Wells Fargo Bank, NA is the as administrative agent. Bank of America, NA, BNP Paribas and JPMorgan Chase Bank, NA are the syndication agents. Wells Fargo Securities, LLC, BNP Paribas Securities Corp., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners.

The revolver will be used for general corporate purposes, including backstopping any commercial paper that Oracle may issue.

Under the revolver, the ratio of total net debt to total capitalization of Oracle and its subsidiaries on a consolidated basis must not exceed 45%.

As of Friday, Oracle has not borrowed any funds under the revolver.

Oracle is a computer software and technology company based in Redwood City, Calif.

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