Oracle has arranged a US$1.5 billion credit line for potential use in its bid to acquire rival PeopleSoft, the company said in a regulatory filing.
Credit Suisse First Boston (CSFB), ABN Amro Bank NV and other lenders have agreed to provide Oracle with a 364-day $1.5 billion revolving line of credit, Oracle of Redwood Shores, California, said in a filing with the U.S. Securities and Exchange Commission (SEC) dated Dec. 24 and posted to the SEC's Web site on Dec. 29.
The money can be used to finance the acquisition of PeopleSoft and related fees and expenses and for working capital purposes, according to the filing. Oracle had already arranged for a 364-day $5 billion credit facility with CSFB, according to Oracle's Form 10-Q filing with the SEC earlier this month. At the time Oracle said it could increase, decrease or supplement the $5 billion.
Oracle launched its offer for PeopleSoft in June, when it submitted a US$5.1 billion hostile bid for the Pleasanton, California-based rival. Oracle later raised its offer to $19.50 per share, or about $6.2 billion. The offer was pushed up to about $7.5 billion when PeopleSoft issued additional shares in connection with its acquisition of J.D. Edwards & Co., according to the 10-Q filing.
Oracle had cash, cash equivalents and short-term investments of $8.1 billion as of Nov. 30, according to the 10-Q filing. The company plans to pay for the PeopleSoft shares and related fees and expenses with internally available cash and borrowings, it has said.
The bid for PeopleSoft has essentially been on hold pending a review by U.S. antitrust regulators. Oracle earlier this month said it provided the U.S. Department of Justice with all of the documents requested to complete the review and said it expects the department to make its decision on whether the acquisition is anticompetitive in early 2004.