Summary
This 8-K filing from Chevron Corporation (CVX), dated June 24, 2013, announces the company's successful issuance of a significant aggregate principal amount of senior notes. The company raised a total of $5.75 billion across four different tranches of notes, with maturities ranging from 2016 to 2023 and varying interest rates. This debt issuance is a strategic move to fund its operations and potentially capital expenditures, reflecting Chevron's ongoing financial management and access to capital markets. The issuance comprises $750 million of 0.889% Notes due 2016, $2 billion of 1.718% Notes due 2018, $1 billion of 2.427% Notes due 2020, and $2.25 billion of 3.191% Notes due 2023. The notes were issued under an existing indenture, supplemented by a fourth supplemental indenture, with Wells Fargo Bank as trustee. The company also entered into an underwriting agreement with major financial institutions for this offering. Investors should note the specific maturity dates and coupon rates for each tranche, which offer a range of yield opportunities and duration.
Key Highlights
- 1Chevron Corporation successfully issued $5.75 billion in aggregate principal amount of senior notes.
- 2The notes are comprised of four tranches: $750 million (2016 maturity), $2 billion (2018 maturity), $1 billion (2020 maturity), and $2.25 billion (2023 maturity).
- 3Interest rates on the notes vary by maturity, ranging from 0.889% to 3.191%.
- 4The issuance occurred on June 24, 2013, with interest payments to be made semiannually.
- 5The company entered into an Underwriting Agreement with Barclays Capital Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC.
- 6The notes were issued under an Indenture dated June 15, 1995, as supplemented by a Fourth Supplemental Indenture dated June 24, 2013.
- 7Chevron retains the right to redeem the notes prior to maturity, with redemption prices detailed in the Final Prospectus Supplement.