By Aleesia Forni
Virginia Beach, Dec. 12 - Devon Energy Corp. sold a $2.25 billion four-part issue of senior notes (Baa1/BBB+/) in fixed- and floating-rate tranches, according to an FWP filed with the Securities and Exchange Commission.
The company priced $500 million of floaters due 2015 at par to yield Libor plus 45 basis points.
A second tranche was $350 million of floaters due 2016 sold with a coupon of Libor plus 54 bps.
There was also $650 million of 1.2% three-year notes sold at 99.901 to yield 1.234%, or Treasuries plus 62 bps.
Finally, $750 million of 2.25% five-year notes was priced with a spread of Treasuries plus 80 bps.
Pricing was at 99.827 to yield 2.287%.
Both fixed-rate tranches sold at the tight end of talk.
Morgan Stanley & Co. LLC, Barclays and Goldman Sachs & Co. were the joint bookrunners.
Proceeds will be used to acquire subsidiaries of GeoSouthern Energy Corp.
The oil, natural gas and natural gas liquids company is based in Oklahoma City.
| Issuer: | Devon Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.25 billion
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Barclays, Goldman Sachs & Co., Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC, RBS Securities Inc.
|
| Senior co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc.
|
| Trade date: | Dec. 11
|
| Settlement date: | Dec. 19
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Floating-rate notes due 2015
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2015
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
|
|
| Floating-rate notes due 2016
|
| Amount: | $350 million
|
| Maturity: | Dec. 15, 2016
|
| Coupon: | Libor plus 54 bps
|
| Price: | Par
|
| Yield: | Libor plus 54 bps
|
|
|
| Notes due 2016
|
| Amount: | $650 million
|
| Maturity: | Dec. 15, 2016
|
| Coupon: | 1.2%
|
| Price: | 99.901
|
| Yield: | 1.234%
|
| Spread: | Treasuries plus 62 bps
|
| Price talk: | Treasuries plus 65 bps area
|
|
|
| Notes due 2018
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2018
|
| Coupon: | 2.25%
|
| Price: | 99.827
|
| Yield: | 2.287%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 83 bps area
|
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