8-KOther EventsExhibits & Filings

CHEVRON CORP 8-K Report, Corporate Update (Mar 3, 2015)

Filed March 3, 2015For Securities:CVX

Summary

Chevron Corporation (CVX) filed an 8-K on March 3, 2015, to report on the issuance of a significant tranche of new debt securities. The company successfully raised a total of $5.75 billion through a series of notes, including both fixed-rate and floating-rate instruments with maturities ranging from 2017 to 2022. This debt issuance, facilitated by an Underwriting Agreement with major financial institutions, provides Chevron with substantial capital. The details of the notes, including interest rates, payment schedules, and maturity dates, are outlined in the filing, along with references to the governing indentures and prospectus supplements. This strategic move likely aims to fund ongoing operations, capital expenditures, or manage its overall capital structure in the prevailing market conditions. Investors should note the mixed nature of the debt issued, with both fixed and floating rate notes. The floating rate notes are tied to LIBOR, which could impact future interest expenses depending on market fluctuations. The substantial amount raised indicates Chevron's continued access to capital markets and its commitment to financing its business objectives. The filing also references previous SEC filings related to the offering, providing further context for interested parties.

Key Highlights

  • 1Chevron Corporation raised a total of $5.75 billion in aggregate principal amount of new debt.
  • 2The debt issuance includes a mix of fixed-rate and floating-rate notes across various maturities (2017, 2018, 2020, 2022).
  • 3Floating rate notes are tied to three-month LIBOR plus a specified spread (0.10% to 0.53%).
  • 4Fixed rate notes carry specific interest rates (1.365% for 2018, 1.961% for 2020, 2.411% for 2022).
  • 5The notes were issued under an Indenture dated June 15, 1995, as amended by a Sixth Supplemental Indenture dated March 3, 2015.
  • 6An Underwriting Agreement was entered into on February 24, 2015, with Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC acting as underwriters.
  • 7Chevron has the right to redeem fixed-rate notes prior to maturity, but not the floating-rate notes.

Frequently Asked Questions

Chevron Corporation issued a total of $5.75 billion in aggregate principal amount of notes.

Chevron issued several series of notes: Floating Rate Notes Due 2017, 1.365% Notes Due 2018, Floating Rate Notes Due 2018, 1.961% Notes Due 2020, Floating Rate Notes Due 2022, and 2.411% Notes Due 2022. The maturity dates range from February 22, 2017, to March 3, 2022.

The floating rate notes bear interest at a floating rate equal to three-month London Interbank Offered Rate (LIBOR) plus a specified spread. For the 2017 Floating Rate Notes, the spread is 0.10%; for the 2018 Floating Rate Notes, it's 0.17%; and for the 2022 Floating Rate Notes, it's 0.53%.

Chevron has the right to redeem the fixed-rate notes (2018, 2020, and 2022 Fixed Rate Notes) in whole or in part at any time prior to maturity. However, the company does not have the right to redeem the floating-rate notes prior to their respective maturities.