Summary
Devon Energy Corporation (DVN) filed an 8-K on July 7, 2011, reporting a material definitive agreement related to a significant debt offering. The company entered into an underwriting agreement to issue a total of $2.25 billion in senior notes. This offering was conducted through a registered public offering under its existing shelf registration statement. The debt issuance comprises three tranches: $500 million in 2.400% Senior Notes due 2016, $500 million in 4.000% Senior Notes due 2021, and $1.25 billion in 5.600% Senior Notes due 2041. The proceeds from this offering will likely be used for general corporate purposes, which could include funding operations, acquisitions, or debt refinancing. Investors should note the maturity dates and coupon rates of these notes.
Key Highlights
- 1Devon Energy entered into an underwriting agreement on July 5, 2011.
- 2The company will sell $2.25 billion in aggregate principal amount of senior notes.
- 3The offering includes $500 million of 2.400% Senior Notes due 2016.
- 4The offering includes $500 million of 4.000% Senior Notes due 2021.
- 5The offering includes $1.25 billion of 5.600% Senior Notes due 2041.
- 6The debt offering is a registered public offering under the company's shelf registration statement.
- 7Goldman, Sachs & Co., Morgan Stanley & Co. LLC, and UBS Securities LLC acted as representatives for the underwriters.