This excerpt taken from the ORCL 8-K filed Mar 21, 2008.
Section 1 Registrants Business and Operations
$2,000,000,000 364-Day Revolving Credit Agreement
On March 18, 2008, Oracle Corporation (Oracle) entered into a $2,000,000,000 364-Day Revolving Credit Agreement (the Credit Agreement) among Oracle; the lenders named therein; Wachovia Bank, National Association (Wachovia), as administrative agent; Bank of America, N.A., as syndication agent; the documentation agents named therein; and Wachovia Capital Markets, LLC, as joint lead arranger and sole bookrunner and Banc of America Securities LLC, as joint lead arranger.
The Credit Agreement provides for an unsecured $2,000,000,000 364-day revolving credit facility (the Facility) to Oracle in order to backstop any commercial paper that Oracle may issue and for working capital and other general corporate purposes. Subject to certain conditions stated in the Credit Agreement, Oracle may borrow, prepay and reborrow amounts under the Facility at any time during the term of the Credit Agreement. All amounts under the Credit Agreement are due on March 17, 2009, unless (i) the commitments are terminated earlier either at the request of Oracle or, if an event of default occurs, by the lenders (or automatically in the case of certain bankruptcy-related events) or (ii) the Facility is extended as described below. Interest is based on either (a) a LIBOR-based formula or (b) a formula based on Wachovias prime rate or on the federal funds effective rate. Oracle may, upon the agreement of either then existing lenders or of additional banks not currently party to the Credit Agreement, extend the termination date of the Facility by an additional 364 days. The Facility may be extended in this manner up to two times in succession.
The Credit Agreement contains certain customary representations and warranties, covenants and events of default, including the requirement that the total net debt to total capitalization ratio of Oracle not exceed 45%. If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the Credit Agreement may be declared immediately due and payable and the commitments may be terminated.
At this time, Oracle has not borrowed any funds under the Credit Agreement.
The description above is a summary and is qualified in its entirety by the Credit Agreement which is filed as Exhibit 10.29 to this report. Certain lenders under the Credit Agreement, or one or more of their affiliates or branches, have provided investment banking and trustee/paying agency services to Oracle, are lenders or agents under other credit facilities of Oracle or provide Oracle and its subsidiaries with cash management services, foreign exchange services, global custody agent services and fixed income brokerage services.