8-KOther EventsExhibits & Filings

EXXON MOBIL CORP 8-K Report, Corporate Update (Apr 15, 2020)

Filed April 15, 2020For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) announced on April 15, 2020, that it entered into an underwriting agreement to issue and sell a substantial amount of new debt securities totaling $9.5 billion. This issuance includes notes with various maturity dates and interest rates, ranging from 2023 to 2051. The purpose of this debt issuance is to raise capital, the specific use of which is not detailed in this filing, but typically such actions are for general corporate purposes or to manage existing debt obligations. This move indicates the company's proactive approach to managing its capital structure and ensuring liquidity, particularly relevant during a period of economic uncertainty. Investors should note the different coupon rates and maturity profiles of these new notes, as they impact the company's future interest expenses and debt repayment schedule. The issuance was conducted under the company's existing shelf registration statement, signifying an established process for capital raising.

Key Highlights

  • 1Exxon Mobil Corp. issued new debt totaling $9.5 billion on April 15, 2020.
  • 2The debt issuance includes notes with maturities in 2023, 2025, 2030, 2040, and 2051.
  • 3Specific interest rates for the notes range from 1.571% (2023 notes) to 4.227% (2040 notes).
  • 4This is a secondary issuance for the 2025 and 2040 notes, with additional amounts sold.
  • 5The issuance was made under the company's existing Form S-3 registration statement.
  • 6The underwriting was managed by major financial institutions: BofA Securities, Inc., Citigroup Global Markets Inc., and J.P. Morgan Securities LLC.

Frequently Asked Questions

Exxon Mobil issued a total of $9.5 billion in new debt across various note series.

The notes issued include: $2.75 billion of 1.571% Notes due 2023, $1.25 billion of 2.992% Notes due 2025, $2.0 billion of 2.610% Notes due 2030, $0.75 billion of 4.227% Notes due 2040, and $2.75 billion of 3.452% Notes due 2051.

While the filing doesn't specify the exact use of proceeds, companies typically issue debt for general corporate purposes, to fund capital expenditures, or to refinance existing debt. This issuance likely aims to enhance liquidity and manage the company's capital structure.

These notes were offered pursuant to the Company's Registration Statement on Form S-3, which was filed on March 10, 2020. This indicates the issuance is part of an established shelf registration process, allowing for quicker capital raising.