Summary
Devon Energy Corporation (DVN) filed this 8-K on October 26, 2001, to report the successful completion of its acquisition of Anderson Exploration Ltd. The acquisition was a significant undertaking, with Devon accepting approximately 97% of Anderson's common shares tendered by October 12, 2001, at a price of C$40.00 per share. The remaining 3% were acquired through a compulsory acquisition, finalizing the deal on October 17, 2001, at a total cost of approximately $3.5 billion. This acquisition marks a substantial expansion for Devon. The company financed this major transaction through a combination of debt issuance and a new credit facility. On October 3, 2001, Devon issued $3.0 billion in debt securities, consisting of $1.75 billion in notes and $1.25 billion in debentures with varying maturity dates and interest rates. The remainder of the purchase price was funded by a $3.0 billion senior unsecured credit facility secured on October 12, 2001, with major financial institutions. Investors should note that while the acquisition is complete, detailed financial statements of the acquired business and pro forma financial information will be filed in a future amendment by December 26, 2001.
Key Highlights
- 1Devon Energy Corporation has successfully completed its acquisition of Anderson Exploration Ltd.
- 2The acquisition involved the purchase of approximately 97% of Anderson's common shares tendered by October 12, 2001, at C$40.00 per share.
- 3The total cost of the acquisition, including common shares, options, and appreciation rights, was approximately $3.5 billion.
- 4Devon financed the acquisition through the issuance of $3.0 billion in debt securities on October 3, 2001.
- 5A new $3.0 billion senior unsecured credit facility was entered into on October 12, 2001, to fund the remainder of the purchase price.
- 6Detailed financial statements for the acquired business and pro forma financial information will be filed in a later amendment.
- 7The acquisition significantly expands Devon Energy's asset base.