Summary
Chevron Corporation, through its indirect wholly owned subsidiary Chevron U.S.A. Inc. (CUSA), has announced the issuance of a significant tranche of new debt securities totaling $5.2 billion. This issuance comprises a mix of fixed-rate and floating-rate notes across various maturities, ranging from 2027 to 2035, with coupon rates from 3.950% to 4.850% for fixed-rate notes and SOFR-based rates for floating-rate notes. The parent corporation, Chevron Corporation, fully guarantees these obligations on an unsecured and unsubordinated basis, ranking equally with existing and future unsecured and unsubordinated debt of the corporation. This debt issuance represents a strategic move by Chevron to access capital markets for funding. Investors should note that while the corporation guarantees the notes, they are structurally subordinated to any indebtedness of CUSA. The varying maturities and types of notes (fixed vs. floating) offer investors different risk-return profiles based on interest rate expectations and desired holding periods. The issuance was conducted under an Underwriting Agreement with prominent financial institutions and was registered with the SEC, with detailed prospectuses available for review.
Key Highlights
- 1Chevron U.S.A. Inc. issued $5.2 billion in new debt, comprised of multiple tranches of fixed and floating-rate notes.
- 2The new notes have maturities ranging from August 2027 to October 2035.
- 3Fixed-rate notes carry coupons from 3.950% to 4.850%.
- 4Floating-rate notes are tied to Compounded SOFR plus a spread of 57 bps (2028 maturity) and 82 bps (2030 maturity).
- 5Chevron Corporation is the full and unconditional guarantor of these notes.
- 6The guaranteed notes rank equally with other unsecured and unsubordinated debt of Chevron Corporation.
- 7The issuance was facilitated through an Underwriting Agreement with Barclays Capital Inc., BofA Securities, Inc., and Citigroup Global Markets Inc.