Oracle Corporation has closed a public offering of 100 million depositary shares, representing interests in its 6.50% Series D Mandatory Convertible Preferred Stock, for gross proceeds of approximately $5.0 billion. The offering closed on February 5, 2026, and the net proceeds will be used for general corporate purposes.
Key Details
- Offering Size: The company issued and sold 100,000,000 depositary shares at a public offering price of $50.00 per share, totaling gross proceeds of $5.0 billion. Net proceeds are estimated to be approximately $4.95 billion.
- Security Terms: Each depositary share represents a 1/2,000th interest in a share of 6.50% Series D Mandatory Convertible Preferred Stock. Dividends will accumulate at an annual rate of 6.50% on the liquidation preference.
- Mandatory Conversion: Unless converted earlier, each share of the preferred stock will automatically convert into Oracle common stock on or around January 15, 2029. The conversion rate will range from 0.2499 to 0.3124 shares of common stock per depositary share, dependent on the average price of Oracle's common stock at that time.
- Use of Proceeds: The company intends to use the net proceeds for general corporate purposes, which may include debt repayment, capital expenditures, acquisitions, and stock repurchases.