Oracle Secures $1.5 Billion Credit Line to Acquire PeopleSoft

In a filing with the Securities and Exchange Commission Oracle said that it signed the agreement with ABN Amro Bank NV, Credit Suisse First Boston, and other syndicated lenders for the credit line.

By Martin Schneider

Posted Dec 30, 2003

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Oracle has announced that it has secured a $1.5 billion revolving credit facility it says it may use to acquire the outstanding shares of PeopleSoft. The announcement comes roughly one week after the company extended its tender offer for PeopleSoft's outstanding shares through February 13, 2004--a deal valued at $7.3 billion. "We are committed to pursuing this transaction and we expected it to take time. The passage of time doesn't deter us in any way and was factored into our thinking," Oracle executive vice president Charles Phillips said in a late-November conference call. "We remain absolutely convinced that a stronger combined-applications business from Oracle and PeopleSoft is good for competition, good for investors, and good for customers." In a filing with the Securities and Exchange Commission Oracle said that it signed the agreement with ABN Amro Bank NV, Credit Suisse First Boston, and other syndicated lenders for the credit line on Wednesday, December 24. Oracle also said in the filing that it will need about $7.5 billion, including fees and expenses, to complete the PeopleSoft offer. Even without the credit line, Oracle says it could raise sufficient money through other loans or by issuing stock, and the company says its offer isn't conditioned on any financing arrangement. The original tender offer for PeopleSoft shares was previously set to expire at midnight on Wednesday, December 31, 2003. As of the close of business on Friday, December 19, a total of 12,395,576 shares had been tendered in and not withdrawn from the offer, according to Oracle.

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