8-KMaterial AgreementsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Material Agreement (Aug 9, 2007)

Filed August 9, 2007For Securities:DVN

Summary

Devon Energy Corporation (DVN) filed an 8-K on August 9, 2007, reporting the execution of a significant material definitive agreement. Specifically, on August 7, 2007, the company entered into a $1,500,000,000 364-day revolving senior credit facility. This facility was established with Bank of America, N.A. as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent, and with Banc of America Securities LLC and J.P. Morgan Securities, Inc. acting as Joint Lead Arrangers and Book Managers. The primary purpose of this substantial credit facility is to ensure short to medium-term liquidity for Devon Energy. This includes its use as a backstop for commercial paper issuance and for general corporate purposes. The filing also references a prior commitment for a $1,000,000,000 364-day senior credit facility dated July 11, 2007, indicating a strategic move to bolster the company's financial flexibility.

Key Highlights

  • 1Devon Energy secured a $1.5 billion 364-day revolving senior credit facility on August 7, 2007.
  • 2The credit facility is intended to provide short to medium-term liquidity.
  • 3Key uses include a commercial paper backstop and general corporate purposes.
  • 4Bank of America, N.A. and JPMorgan Chase Bank, N.A. are key financial institutions involved as agents.
  • 5Banc of America Securities LLC and J.P. Morgan Securities, Inc. served as Joint Lead Arrangers and Book Managers.
  • 6This action follows a previous commitment for a $1 billion credit facility on July 11, 2007.
  • 7The filing underscores the company's proactive approach to managing its financial resources and liquidity.

Frequently Asked Questions

The primary purpose of the $1.5 billion 364-day revolving senior credit facility is to provide Devon Energy with short to medium-term liquidity. This includes acting as a backstop for its commercial paper program and supporting general corporate needs.

The facility involves Bank of America, N.A. as the Administrative Agent, JPMorgan Chase Bank, N.A. as the Syndication Agent, and Banc of America Securities LLC and J.P. Morgan Securities, Inc. as the Joint Lead Arrangers and Book Managers.

No, this $1.5 billion facility executed on August 7, 2007, follows a prior commitment for a $1 billion 364-day senior credit facility that was entered into on July 11, 2007. This suggests a strategy to enhance financial flexibility.

A revolving senior credit facility provides the company with access to a defined amount of funds that can be borrowed, repaid, and re-borrowed over the term of the agreement. For investors, this generally indicates a strong liquidity position and the company's ability to meet its financial obligations and fund operations or strategic initiatives.