Summary
Chevron Corporation, through its indirect wholly-owned subsidiary Chevron U.S.A. Inc. (CUSA), has completed a significant debt offering totaling approximately $5.75 billion. This issuance comprises a mix of fixed-rate and floating-rate notes with maturities ranging from 2027 to 2035. The fixed-rate notes offer coupon rates between 4.405% and 4.980%, while the floating-rate notes are tied to Compounded SOFR plus a spread. Chevron Corporation is providing an unsecured and unsubordinated guarantee for these notes, ranking them equally with other senior unsecured indebtedness of the corporation. This debt issuance represents a strategic move by Chevron to secure long-term funding. The diversification in note types (fixed and floating) and maturity profiles suggests a proactive approach to managing its capital structure and potential interest rate exposures. Investors should note that while the corporation's guarantee is unconditional, the notes are structurally subordinated to any indebtedness of CUSA. The details of the offering, including specific terms and conditions, are further elaborated in the accompanying prospectus supplements and underwriting agreements filed with the SEC.
Key Highlights
- 1Chevron U.S.A. Inc. issued $5.75 billion in aggregate principal amount of notes across multiple series.
- 2The debt offering includes both fixed-rate notes (maturities 2027-2035 with rates from 4.405% to 4.980%) and floating-rate notes (maturities 2027-2028 tied to SOFR).
- 3Chevron Corporation is the guarantor for the entire note issuance, providing an unsecured and unsubordinated guarantee.
- 4The notes rank equally with other existing and future unsecured and unsubordinated indebtedness of Chevron Corporation.
- 5The issuance was facilitated by an Underwriting Agreement with Barclays Capital Inc., BofA Securities, Inc., and J.P. Morgan Securities LLC.
- 6The company has filed various prospectus supplements and related documents with the SEC detailing the offering terms.
- 7The notes are structurally subordinated to any indebtedness of Chevron U.S.A. Inc. itself.