Oracle Stocks Gain 4.31% With $20 Billion Financing Package in Focus

This article first appeared on GuruFocus. Oracle (NYSE:ORCL) climbed 4.31% to $124.36 at 10:10 a.m. ET on November 3 as investors weighed a roughly $20 billion financing package against its cloud expansion ambitions. The enterprise software and cloud infrastructure provider's financing terms detail approximately $10 billion in common shares and $10 billion in bonds. That funding comes with two clear costs: more shares outstanding and a substantial interest bill. Warning! GuruFocus has detected 5 Warning Signs with ORCL. Is ORCL fairly valued? Test your thesis with our free DCF calculator. The equity offering comprises 86,206,897 shares priced at $116 each, while five bond tranches carry coupons ranging from 7% to 8.