8-KMaterial AgreementsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Material Agreement (Jul 16, 2007)

Filed July 16, 2007For Securities:DVN

Summary

Devon Energy Corporation (DVN) has filed an 8-K report detailing the entry into a significant material definitive agreement. Specifically, on July 11, 2007, the company secured a $1,000,000,000 364-Day Senior Credit Facility. This facility, with Bank of America acting as Administrative Agent and Banc of America Securities LLC and J.P. Morgan Securities, Inc. as Joint Lead Arrangers, is designed to bolster the company's short to medium-term liquidity. The primary purpose of this substantial credit line is to meet immediate financial needs, including providing a backstop for commercial paper and supporting general corporate activities. This strategic move indicates Devon Energy's proactive approach to managing its financial flexibility and ensuring operational continuity, especially in light of its short-term funding requirements.

Key Highlights

  • 1Devon Energy entered into a $1,000,000,000 364-Day Senior Credit Facility.
  • 2The agreement's effective date was July 11, 2007.
  • 3Bank of America is the Administrative Agent for the facility.
  • 4Banc of America Securities LLC and J.P. Morgan Securities, Inc. served as Joint Lead Arrangers.
  • 5Proceeds are earmarked for short to medium-term liquidity needs.
  • 6Uses include commercial paper backstop and general corporate purposes.
  • 7This represents a significant commitment to short-term financial flexibility.

Frequently Asked Questions

The primary purpose of the $1,000,000,000 364-Day Senior Credit Facility is to provide Devon Energy with short to medium-term liquidity. This includes backing its commercial paper program and funding general corporate expenses.

Bank of America is the Administrative Agent. Banc of America Securities LLC and J.P. Morgan Securities, Inc. acted as the Joint Lead Arrangers for this significant credit facility.

The Senior Credit Facility has a term of 364 days, meaning it is a short-term financing arrangement.

Not necessarily. While the facility provides liquidity for short-term needs, such as commercial paper backstops, it is a common and prudent financial management strategy for companies to secure credit lines to ensure operational flexibility and manage working capital effectively. The primary stated purposes are for liquidity and general corporate needs.