(Bloomberg) -- Oracle Corp. is talking to banks about boosting the size of a $4.4 billion term loan that helped fund its acquisition of Cerner Corp., which would allow it to borrow less money in the turbulent bond market for the purchase. 

The size of the increase is still under discussion, according to people with knowledge of the matter. But the proceeds would refinance short-term debt used to fund the purchase of Cerner, the people said, asking not to be identified discussing a private transaction. 

Oracle can increase the term loan up to a maximum of $6 billion under the loan’s existing documentation, according to a filing. The company originally funded the acquisition with about $15.7 billion of debt known as a bridge loan provided by a group of banks. Such debt is typically later refinanced into longer-term bonds and loans. 

The $4.4 billion term loan that Oracle inked in August partly refinanced that debt, cutting the bridge loan to about $11 billion. A representative for Bank of America Corp., the administrative agent on the bridge obligation, declined to comment, as did the company. A representative for Bank of Nova Scotia, the administrative agent on the term debt, also declined to comment.  

Read more: Oracle’s New $4.4 Billion Loan Reduces Bridge for Cerner Deal

Companies are increasingly reluctant to rely on the corporate bond market for funding, as yields remain elevated and access for many borrowers is spotty. But the market has stabilized in recent days, allowing UnitedHealth to sell $9 billion of debt on Tuesday to help fund its acquisition of Change Healthcare Inc. 

The company has more than $90 billion of total debt as of the end of August, which according to Bloomberg Intelligence analyst Robert Schiffman is one of the largest totals among its tech peers. But in September, S&P Global Ratings said it was no longer actively reviewing whether to downgrade the company, whose credit rating is two steps above junk. The bond grader said instead that there may be a ratings cut over the medium term, known as a negative outlook. That switch was a positive, BI’s Schiffman wrote. 

“With S&P meaningfully lowering downgrade risk, Oracle (Baa2/BBB/BBB+) may be on the verge of outperformance relative to large-technology peers, especially if it decides to forego long-duration bond financing following the closing of its Cerner Corp. acquisition,” according to Schiffman.

(Updates with analyst comment from sixth paragraph)

©2022 Bloomberg L.P.