By Andrea Heisinger
New York, June 17 - Chevron Corp. priced $6 billion of notes (Aa1/AA/) in four tranches during Monday's session, a market source said.
The size was increased from $5.6 billion. Plans for possible tranches of floating-rate notes due 2016 and 2018 were scrapped as there was not enough investor interest, the source said.
There was $750 million of three-year notes sold at par to yield 0.889% with a spread of Treasuries plus 40 basis points. The size of the tranche was increased from $350 million, a source said. Initial talk was in the Treasuries plus 70 bps area, and it was later revised to the 55 bps area.
A $2 billion tranche of five-year notes was priced at par to yield 1.718% with a spread of 65 bps over Treasuries. Initial guidance was in the 90 bps area and was later in the 75 bps area.
The $1 billion tranche of seven-year notes was sold at par to yield 2.427% with a spread of Treasuries plus 85 bps. Guidance was initially in the120 bps area, with later talk in the 95 bps area.
Finally, there was $2.25 billion of 10-year bonds priced at par to yield 3.191% with a spread of 100 bps over Treasuries. Initial talk was in the 130 bps area, with guidance in the 110 bps area later.
Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including refinancing a portion of commercial paper borrowings.
Chevron last tapped the U.S. bond market with a $4 billion offering in two parts on Nov. 28, 2012. That trade included a 1.104% five-year note priced at Treasuries plus 47 bps and a 2.355% 10-year tranche with a spread of 72 bps over Treasuries.
The petroleum, chemical, mining, power and energy company is based in San Ramon, Calif.
| Issuer: | Chevron Corp.
|
| Issue: | Notes
|
| Amount: | $6 billion, upsized from $5.6 billion
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Trade date: | June 17
|
| Ratings: | Moody's: Aa1
|
| Standard & Poor's: AA
|
|
|
| Three-year notes
|
| Amount: | $750 million, upsized from $350 million
|
| Maturity: | 2016
|
| Coupon: | 0.889%
|
| Price: | Par
|
| Yield: | 0.889%
|
| Spread: | Treasuries plus 40 bps
|
| Price talk: | 70 bps area (initial), 55 bps area (revised)
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | 2018
|
| Coupon: | 1.718%
|
| Price: | Par
|
| Yield: | 1.718%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | 90 bps area (initial), 75 bps area (revised)
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2020
|
| Coupon: | 2.427%
|
| Price: | Par
|
| Yield: | 2.427%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | 120 bps area (initial), 95 bps area (revised)
|
|
|
| 10-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | 2023
|
| Coupon: | 3.191%
|
| Price: | Par
|
| Yield: | 3.191%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | 130 bps area (initial), 110 bps area (revised)
|
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