8-KOther EventsExhibits & Filings

DEVON ENERGY CORP/DE 8-K Report, Corporate Update (Aug 18, 2016)

Filed August 18, 2016For Securities:DVN

Summary

This 8-K filing from Devon Energy Corporation (DVN) on August 18, 2016, details the results of its tender offers to repurchase its outstanding notes. The company announced the early tender results, indicating a significant portion of its 2.250% notes due 2018 were tendered, prompting an upsizing of the repurchase program. Specifically, the company increased the maximum repurchase amount to approximately $652.1 million to accommodate all 2018 Notes validly tendered by the early tender date. This means that all tendered 2018 Notes will be purchased, while no notes from other series tendered by the early tender date, nor any notes of any series tendered after the early tender date, will be accepted. This strategic move suggests Devon Energy is prioritizing the reduction of its near-term debt obligations.

Key Highlights

  • 1Devon Energy announced early tender results for its debt repurchase program on August 18, 2016.
  • 2The company significantly increased its maximum repurchase amount to approximately $652.1 million to cover all tendered 2.250% notes due 2018.
  • 3Approximately $639.5 million worth of 2018 Notes were validly tendered by the early tender date.
  • 4All validly tendered and not withdrawn 2018 Notes will be accepted for purchase.
  • 5No other series of notes tendered by the early tender date will be accepted due to the offer being fully subscribed by the 2018 Notes.
  • 6Notes tendered after the early tender deadline of August 17, 2016, will not be accepted for purchase.
  • 7The tender offers were made pursuant to an offer to purchase dated August 4, 2016.

Frequently Asked Questions

This 8-K filing announces the early tender results, upsizing, and pricing of Devon Energy's tender offers to repurchase its outstanding senior notes. It informs investors about which notes will be accepted for repurchase and the total amount of debt being retired.

The company is repurchasing its 2.250% notes due 2018. While other notes were included in the initial offer, the tender offer was fully subscribed by the 2018 Notes at the early tender date, meaning only these specific notes will be accepted.

The company upsized the tender offer because the principal amount of 2.250% notes due 2018 tendered by the early tender date exceeded the original repurchase limit. By increasing the repurchase amount, Devon Energy ensures it can buy back all of these specific notes that were tendered early.

Notes of any series tendered after the early tender date (August 17, 2016) will not be accepted for purchase. Similarly, any notes other than the 2018 Notes that were tendered by the early tender date also will not be accepted because the offer was fully subscribed by the 2018 Notes.