Oracle Stock Falls on $20 Billion Raise

This article first appeared on GuruFocus. Oracle Corporation (NYSE:ORCL) fell 3.21% in premarket after it filed to raise $20 billion through a $10 billion note sale and a concurrent $10 billion common stock offering. Warning! GuruFocus has detected 5 Warning Signs with ORCL. Is ORCL fairly valued? Test your thesis with our free DCF calculator. The notes come in six tranches, from floating-rate paper due 2029 out to fixed-rate notes due 2046, with BofA Securities as global coordinator. Neither offering is conditioned on the other closing. Oracle said the proceeds would go to general corporate purposes, which can include capital spending, debt repayment, acquisitions, dividends and buybacks. The raise lands on top of $125.