Summary
Devon Energy Corporation (DVN) filed an 8-K on March 22, 2018, detailing significant updates to its tender offers for outstanding notes and related consent solicitations. The company announced the early tender results and upsized the aggregate maximum repurchase amount for its 7.875% debentures due 2031 and 7.950% debentures due 2032. This increase was driven by the desire to repurchase all eligible tendered notes from these two series, totaling approximately $1.1 billion. Furthermore, Devon Energy successfully obtained the necessary consents to amend the indenture governing its 2032 Notes. The company entered into a Fourth Supplemental Indenture, which, effective March 22, 2018, alters redemption notice requirements, substantially eliminates restrictive covenants and certain events of default, modifies merger/asset sale covenants, and adjusts other provisions. These actions indicate a proactive approach by Devon Energy to manage its debt structure and reduce financial flexibility constraints.
Key Highlights
- 1Devon Energy announced the early tender results for its debt tender offers on March 21, 2018.
- 2The company significantly upsized its tender offer to repurchase an aggregate principal amount of approximately $1.1 billion, specifically targeting the 7.875% debentures due 2031 and 7.950% debentures due 2032.
- 3Tendered principal amount of the 2031 and 2032 Notes at the Early Tender Date was $807,148,000, which was accepted for payment.
- 4As a result of the tender offer being fully subscribed for the eligible notes, no other series of notes tendered will be accepted for purchase.
- 5Devon Energy received the requisite consents to amend the indenture governing its 2032 Notes.
- 6A Fourth Supplemental Indenture was entered into on March 22, 2018, to implement these amendments, which include altering redemption notice requirements and substantially eliminating restrictive covenants.
- 7The tender offers and consent solicitations were set to expire on April 3, 2018, unless extended or terminated.