Oracle's $18B Data Center Debt Trades at 89-91 Cents as Syndicate Banks Stuck
ORCL sits 29% above its 52-week low of $114.5.
Summary
Oracle's $18 billion loan package for its New Mexico data center is under pressure, with syndicate banks quoting the debt at 89-91 cents on the dollar. Efforts to sell the loans to a broader investor pool have stalled amid concerns over Oracle's rising borrowing and weakening creditworthiness. Jefferies is among the banks forced to hold more of this project debt on its balance sheet than planned, adding risk to its loan book. This follows Oracle's S&P downgrade in July to one notch above junk and its forecast of up to $95 billion in capital expenditure for fiscal 2027. The debt stress signals growing investor skepticism about Oracle's aggressive AI infrastructure spending and could pressure its financing costs further.
At the time of this announcement, ORCL was trading at $147.83 on NYSE in the Technology sector, with a market capitalization of approximately $446.3B. The 52-week trading range was $114.50 to $329.50. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.