Summary
Chevron Corporation (CVX), through its indirect wholly-owned subsidiary Chevron U.S.A. Inc. (CUSA), announced the issuance of an aggregate of $4.15 billion in notes on August 12, 2020. This debt offering consists of various fixed-rate and floating-rate notes with maturities ranging from 2022 to 2050. The aggregate principal amount is comprised of $400 million in 0.333% Notes Due 2022, $350 million in Floating Rate Notes Due 2022, $500 million in 0.426% Notes Due 2023, $500 million in Floating Rate Notes Due 2023, $750 million in 0.687% Notes Due 2025, $750 million in 1.018% Notes Due 2027, and $750 million in 2.343% Notes Due 2050. These notes are guaranteed by the parent corporation, Chevron Corporation, on an unsecured and unsubordinated basis, ranking equally with other existing and future unsecured and unsubordinated debt of Chevron. The proceeds from this issuance are not explicitly stated in this 8-K filing but are typically used for general corporate purposes, which could include refinancing existing debt, capital expenditures, or other strategic initiatives. Investors should note the varying interest rates and maturity dates, as well as the floating rates tied to LIBOR for certain tranches, which introduce different risk and return profiles.
Key Highlights
- 1Chevron U.S.A. Inc. issued a total of $4.15 billion in various notes on August 12, 2020.
- 2The debt offering includes a mix of fixed-rate notes (maturing 2022, 2023, 2025, 2027, 2050) and floating-rate notes (maturing 2022 and 2023).
- 3Chevron Corporation acts as a full and unconditional guarantor for these notes on an unsecured and unsubordinated basis.
- 4The shortest maturity notes are the 2022 Fixed Rate Notes ($400M) and 2022 Floating Rate Notes ($350M), both maturing in August 2022.
- 5The longest maturity note is the 2.343% Notes Due 2050, with an aggregate principal amount of $750 million.
- 6The floating-rate notes are tied to three-month LIBOR, with specific spreads of 0.110% for 2022 notes and 0.200% for 2023 notes.
- 7The filing references several related documents, including the Underwriting Agreement, Indenture, and various prospectus supplements, which provide further details on the terms of the notes.