8-KOther EventsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Corporate Update (Jan 9, 2009)

Filed January 9, 2009For Securities:DVN

Summary

Devon Energy Corporation (DVN) announced the completion of a significant debt offering on January 9, 2009. The company successfully issued $500 million in 5.625% senior notes due 2014 and $700 million in 6.30% senior notes due 2019, totaling $1.2 billion in aggregate principal amount. These notes are unsecured and unsubordinated obligations of Devon Energy. The primary use of the net proceeds from this offering is to repay outstanding commercial paper, indicating a strategic move to manage short-term debt obligations. The remaining proceeds will be allocated for general corporate purposes. This debt issuance was registered with the SEC under a Form S-3, and the offering was underwritten by major financial institutions.

Key Highlights

  • 1Completion of a $1.2 billion senior notes offering on January 9, 2009.
  • 2Issuance includes $500 million of 5.625% senior notes due 2014.
  • 3Issuance includes $700 million of 6.30% senior notes due 2019.
  • 4Proceeds will primarily be used to repay outstanding commercial paper.
  • 5Remaining proceeds designated for general corporate purposes.
  • 6Notes are unsubordinated and unsecured obligations of Devon Energy.
  • 7Offering was underwritten by Banc of America Securities LLC, J.P. Morgan Securities Inc., and UBS Securities LLC.

Frequently Asked Questions

The primary purpose of this debt offering is to repay Devon Energy's outstanding commercial paper, which helps manage short-term debt. The remaining funds will be used for general corporate purposes.

Devon Energy issued two series of senior notes: $500 million of 5.625% senior notes due January 15, 2014, and $700 million of 6.30% senior notes due January 15, 2019. These notes are unsecured and unsubordinated.

The offering was underwritten by Banc of America Securities LLC, J.P. Morgan Securities Inc., and UBS Securities LLC, acting as representatives for the several underwriters.

This offering converts short-term commercial paper debt into longer-term senior notes, potentially improving the company's debt maturity profile and providing financial flexibility for its general corporate needs.