Weekly | ORCL: No Más?
Navigating a $2.4T RPO Web via Equity Dilution as IG Market Taps Out
The investment grade credit market is all but tapped-out when it comes to financing Larry Ellison’s gigantic call-option on compute.
Gross leverage through its $130B financial debt stack already sits at a punchy 4.4x LTM EBITDA, but it is the scale of the off-balance sheet commitments which is keeping the market on edge.
On a future value basis, contracted leases alone total $300B:
$40B already in-place (5.1x LTM EBITDAR)
$260B coming on line through FY29
Add $32B in committed purchase agreements (power orders and cloud infra) and we are closing in on almost half a trillion dollars of future obligations.