NOTES PAYABLE AND OTHER BORROWINGS

9 Months Ended

Feb. 28, 2018

Debt Disclosure [Abstract]

NOTES PAYABLE AND OTHER BORROWINGS

6. NOTES PAYABLE AND OTHER BORROWINGS

Senior Notes

In November 2017, we issued $10.0 billion, par value, of fixed-rate senior notes comprised of the following as of February 28, 2018:

		February 28, 2018
(Dollars in millions)	Date of Issuance	Amount			Effective Interest Rate
$1,250, 2.625%, due February 2023	November 2017	$	1,250		2.637%
$2,000, 2.95%, due November 2024	November 2017		2,000		2.975%
$2,750, 3.25%, due November 2027	November 2017		2,750		3.263%
$1,750, 3.80%, due November 2037	November 2017		1,750		3.827%
$2,250, 4.00%, due November 2047	November 2017		2,250		4.027%
Total fixed rate senior notes		$	10,000
Unamortized discount/issuance costs			(55	)
Total fixed rate senior notes, net		$	9,945

We issued the senior notes for general corporate purposes, which may include stock repurchases, payment of cash dividends on our common stock, repayment of indebtedness and future acquisitions. The interest is payable semi-annually. We may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances.

The senior notes rank pari passu with any other existing and future unsecured and unsubordinated indebtedness of Oracle Corporation. All existing and future indebtedness and liabilities of the subsidiaries of Oracle Corporation are or will be effectively senior to the senior notes. We were in compliance with all debt-related covenants at February 28, 2018.

There have been no other significant changes in our notes payable or other borrowing arrangements that were disclosed in our Annual Report on Form 10-K for the fiscal year ended May 31, 2017.