8-KOther EventsExhibits & Filings

CHEVRON CORP 8-K Report, Corporate Update (Mar 3, 2009)

Filed March 3, 2009For Securities:CVX

Summary

Chevron Corporation (CVX) announced on March 3, 2009, the successful issuance of $5 billion in aggregate principal amount of senior notes across three tranches: $1.5 billion in 3.450% Notes due 2012, $2 billion in 3.950% Notes due 2014, and $1.5 billion in 4.950% Notes due 2019. These notes were issued under an existing indenture with Wells Fargo Bank, National Association, as trustee, and were underwritten by Barclays Capital Inc. and Morgan Stanley & Co. Incorporated. This significant debt issuance provides Chevron with substantial capital, likely to strengthen its financial position and fund ongoing operations or strategic initiatives during a period of economic uncertainty. Investors should note the specific interest rates and maturity dates for each tranche, which indicate the cost of this debt and the repayment schedule. The filing also incorporates by reference the underwriting agreement and supplemental indenture, along with various prospectus supplements, offering detailed terms and conditions of this offering.

Key Highlights

  • 1Chevron Corporation issued $5 billion in aggregate principal amount of senior notes.
  • 2The notes are divided into three tranches: $1.5 billion (3.450% due 2012), $2 billion (3.950% due 2014), and $1.5 billion (4.950% due 2019).
  • 3The issuance occurred on March 3, 2009, with an underwriting agreement dated February 26, 2009.
  • 4The notes were issued pursuant to an Indenture dated June 15, 1995, as supplemented by a Second Supplemental Indenture dated March 3, 2009.
  • 5Wells Fargo Bank, National Association, serves as the trustee for the notes.
  • 6Barclays Capital Inc. and Morgan Stanley & Co. Incorporated acted as the representatives for the underwriters.
  • 7Interest payments on the notes will be made semiannually on March 3 and September 3, starting September 3, 2009.

Frequently Asked Questions

This 8-K filing is primarily to report on the material event of Chevron Corporation issuing $5 billion in aggregate principal amount of senior notes across three different maturity dates and interest rates.

Chevron issued a total of $5 billion in debt. Specifically, $1.5 billion in 3.450% Notes due 2012, $2 billion in 3.950% Notes due 2014, and $1.5 billion in 4.950% Notes due 2019. Interest is paid semi-annually.

Issuing debt in March 2009, a period of significant global financial market stress, likely aimed to secure substantial liquidity for operations, capital expenditures, debt refinancing, or strategic flexibility. This provides the company with access to funds, potentially at favorable rates secured before further market deterioration, and demonstrates financial strength to stakeholders.

Investors can find more detailed information by referring to the incorporated exhibits, including the Underwriting Agreement, the Second Supplemental Indenture, and the various prospectus supplements filed with the SEC. The filing number for the registration of these notes is 333-141138.