Oracle 2006 Annual Report Download - page 94

Table of Contents
ORACLE CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
May 31, 2007
5. BORROWINGS
Borrowings consisted of the following:
May 31, May 31,
(Dollars in millions) 2007 2006
Commercial paper notes $ 1,355 $ —
Floating rate senior notes due May 2009 1,000 —
Floating rate senior notes due May 2010 1,000 —
Floating rate senior notes due January 2009 — 1,500
5.00% senior notes due January 2011, net of discount of $6 and $8 as of
May 31, 2007 and 2006 2,244 2,242
5.25% senior notes due January 2016, net of discount of $9 and $11 as of
May 31, 2007 and 2006 1,991 1,989
6.91% senior notes due February 2007 — 150
Notes payable due June 2006 — 6
Capital leases 3 7
Total borrowings $ 7,593 $ 5,894
Borrowings, current portion $ 1,358 $ 159
Borrowings, long-term portion $ 6,235 $ 5,735
Short-Term Borrowings
Commercial Paper Program
In February 2006, we entered into dealer agreements with various financial institutions and an Issuing and
Paying Agency Agreement with JPMorgan Chase Bank, National Association, relating to a $3.0 billion
commercial paper program (CP Program). Under the CP Program, we may issue and sell unsecured
short-term promissory notes pursuant to a private placement exemption from the registration requirements
under federal and state securities laws. In fiscal 2007, we issued approximately $2.1 billion of short-term
promissory notes (Commercial Paper Notes) pursuant to our CP Program. As of May 31, 2007, the maturities
of the Commercial Paper Notes ranged between two weeks and three months. The weighted average yield of
the Commercial Paper Notes, including issuance costs was 5.33% and we had $1.6 billion of capacity
remaining under our CP Program at May 31, 2007. We did not have any outstanding borrowings under our
CP Program at May 31, 2006.
Long-Term Borrowings
Senior Notes Payable
In May 2007, we issued $2.0 billion of floating rate senior notes, of which $1.0 billion is due May 2009 (New
2009 Notes) and $1.0 billion is due May 2010 (2010 Notes). We issued the New 2009 Notes and 2010 Notes
to fund the redemption of the $1.5 billion of senior floating rate notes that we issued in fiscal 2006 (see
below) and for general corporate purposes. The New 2009 Notes and 2010 Notes bear interest at a rate of
three-month USD LIBOR plus 0.02% and 0.06%, respectively, and interest is payable quarterly. The New
2009 Notes and 2010 Notes may not be redeemed prior to their maturity.
In January 2006, we issued $5.75 billion of senior notes consisting of $1.5 billion of floating rate senior notes
due 2009 (Original 2009 Notes), $2.25 billion of 5.00% senior notes due 2011 (2011 Notes) and $2.0 billion
of 5.25% senior notes due 2016 (2016 Notes and together with the Original 2009 Notes and the 2011 Notes,
Original
87
Source: ORACLE CORP, 10-K, June 29, 2007 Powered by Morningstar® Document Research℠