8-KOther EventsExhibits & Filings

CHEVRON CORP 8-K Report, Corporate Update (Nov 18, 2015)

Filed November 18, 2015For Securities:CVX

Summary

Chevron Corporation (CVX) announced on November 17, 2015, the issuance of a significant debt offering totaling $5.0 billion. This offering comprises various fixed and floating rate notes with maturities ranging from 2017 to 2025. The funds raised through this issuance are intended to support the company's ongoing operations and strategic initiatives. This debt issuance demonstrates Chevron's access to capital markets and its strategy to manage its capital structure. Investors should note the different interest rates and maturity dates across the various tranches, including notes tied to LIBOR, which introduces floating rate risk. The company has provided detailed prospectuses and supplemental indentures for these offerings, available for further review.

Key Highlights

  • 1Chevron issued a total of $5 billion in new debt across multiple tranches.
  • 2The debt offering includes both fixed-rate and floating-rate notes.
  • 3Maturities for the notes range from 2017 to 2025, providing staggered debt repayment.
  • 4Floating rate notes are tied to three-month LIBOR plus a spread (0.36% for 2017 notes, 0.51% for 2018 notes).
  • 5Fixed-rate notes carry coupon rates from 1.344% to 3.326%.
  • 6The company has the right to redeem fixed-rate notes prior to maturity, but not the floating-rate notes.
  • 7The issuance was structured through an Underwriting Agreement with major financial institutions.

Frequently Asked Questions

Chevron Corporation issued a total of $5,000,000,000 (or $5 billion) in aggregate principal amount of notes.

The issuance includes several tranches: 1.344% Notes Due 2017, Floating Rate Notes Due 2017 (maturing Nov 9, 2017); 1.790% Notes Due 2018, Floating Rate Notes Due 2018 (maturing Nov 16, 2018); 2.419% Notes Due 2020 (maturing Nov 17, 2020); and 3.326% Notes Due 2025 (maturing Nov 17, 2025).

The 2017 Floating Rate Notes bear interest at a rate equal to three-month LIBOR plus 0.36%. The 2018 Floating Rate Notes bear interest at a rate equal to three-month LIBOR plus 0.51%.

Chevron has the right to redeem the fixed-rate notes in whole or in part prior to maturity. However, the company does not have the right to redeem the floating-rate notes before their respective maturity dates.