By Aleesia Forni
Virginia Beach, Nov. 9 – Chevron Corp. sold $5 billion of senior notes (Aa1/AA) in six tranches due 2017, 2018, 2020 and 2025 on Monday, according to an informed source.
A $1 billion 1.344% two-year note sold at par with a spread of 45 basis points over Treasuries.
The notes were guided in the Treasuries plus 50 bps area having tightened from Treasuries plus 55 bps to 60 bps range.
Also, $500 million of two-year floaters sold at par to yield Libor plus 36 bps following guidance set at the Libor equivalent to the fixed-rate tranche.
And $1.25 billion of 1.79% three-year notes sold at par, or Treasuries plus 55 bps.
The tranche sold at the tightest end of the Treasuries plus 60 bps area guidance. Initial talk was in the range of Treasuries plus 65 bps to 70 bps.
A $250 million three-year floater priced at par to yield Libor plus 51 bps. Guidance was at the Libor equivalent to the three-year notes.
The company also sold $1.25 billion of 2.419% five-year notes at par with a 67 bps spread over Treasuries.
Guidance was in the Treasuries plus 70 bps area and talk was in the range of Treasuries plus 80 bps to 85 bps.
Finally, $750 million of 3.326% 10-year notes priced at par, or 97 bps over Treasuries.
The tranche was guided in the Treasuries plus 100 bps area having firmed from the Treasuries plus 120 bps area talk.
A five-year floating-rate tranche, which was talked at the Libor equivalent to the fixed-rate piece, was dropped prior to the deal’s launch.
Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including refinancing a portion of commercial paper.
The petroleum, chemical, mining, power and energy company is based in San Ramon, Calif.
| Issuer: | Chevron Corp.
|
| Issue: | Senior notes
|
| Amount: | $5 billion
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities LLC
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 13, 2017
|
| Coupon: | 1.344%
|
| Price: | Par
|
| Yield: | 1.344%
|
| Spread: | Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 50 bps area, tightened from Treasuries plus 55 bps to 60 bps
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Nov. 9, 2017
|
| Coupon: | Libor plus 36 bps
|
| Price: | Par
|
| Yield: | Libor plus 36 bps
|
| Price guidance: | Libor equivalent to two-year fixed-rate notes
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 16, 2018
|
| Coupon: | 1.79%
|
| Price: | Par
|
| Yield: | 1.79%
|
| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 60 bps area, tightened from Treasuries plus 65 bps to 70 bps
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | Nov. 16, 2018
|
| Coupon: | Libor plus 51 bps
|
| Price: | Par
|
| Yield: | Libor plus 51 bps
|
| Spread: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 17, 2020
|
| Coupon: | 2.419%
|
| Price: | Par
|
| Yield: | 2.419%
|
| Spread: | Treasuries plus 67 bps
|
| Price guidance: | Treasuries plus 70 bps area, tightened from Treasuries plus 80 bps to 85 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 17, 2025
|
| Coupon: | 3.326%
|
| Price: | Par
|
| Yield: | 3.326%
|
| Spread: | Treasuries plus 97 bps
|
| Price guidance: | Treasuries plus 100 bps area, tightened from Treasuries plus 120 bps area
|
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