By Andrea Heisinger
New York, May 8 - Devon Energy Corp. gave the terms of its $2.5 billion sale of senior notes (Baa1/BBB+/) sold in three tranches in an FWP filing with the Securities and Exchange Commission on Tuesday.
The deal included $750 million of 1.875% five-year notes priced at 99.753 to yield 1.927% with a spread of Treasuries plus 115 basis points. The notes have a make-whole call at 20 bps over Treasuries until April 15, 2017, after which there's a par call.
A second part was $1 billion of 3.25% 10-year paper sold at 99.408 to yield 3.32% with a spread of Treasuries plus 145 bps. The tranche has a make-whole call at 25 bps over Treasuries until Feb. 15, 2022 and a par call after.
The final tranche was $750 million of 4.75% 30-year bonds priced at 99.115 to yield 4.806% with a spread of Treasuries plus 175 bps. There's a make-whole call at 30 bps over Treasuries until Dec. 15, 2041 and a par call after.
Active bookrunners were Goldman Sachs & Co. and Morgan Stanley & Co. LLC. Passive bookrunners were Barclays Capital Inc., RBC Capital Markets LLC, RBS Securities Inc. and UBS Securities LLC.
Senior co-managers were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.
Co-managers were BMO Capital Markets, Mitsubishi UFJ Securities (USA) Inc., Nomura Securities International Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to repay commercial paper borrowings as they come due, to repay amounts drawn on a revolving credit facility and for general corporate purposes.
The oil, natural gas and natural gas liquids company is based in Oklahoma City.
| Issuer: | Devon Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC (active), Barclays Capital Inc., RBC Capital Markets LLC, RBS Securities Inc., UBS Securities LLC (passive)
|
| Senior co-managers: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Co-managers: | BMO Capital Markets, Mitsubishi UFJ Securities (USA) Inc., Nomura Securities International Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Trade date: | May 7
|
| Settlement date: | May 14
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2017
|
| Coupon: | 1.875%
|
| Price: | 99.753
|
| Yield: | 1.927%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until April 15, 2017, par call after
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2022
|
| Coupon: | 3.25%
|
| Price: | 99.408
|
| Yield: | 3.32%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until Feb. 15, 2022, par call after
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | May 15, 2042
|
| Coupon: | 4.75%
|
| Price: | 99.115
|
| Yield: | 4.806%
|
| Spread: | Treasuries plus 175 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 15, 2041, par call after
|
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