By Aleesia Forni
Virginia Beach, Feb. 24 – Chevron Corp. sold $6 billion of notes (Aa1/AA/) in six tranches on Tuesday, according to a market source.
A $900 million tranche of floating-rate notes due 2017 priced at par to yield Libor plus 10 basis points. The notes sold at the tight end of talk set in the 12.5 bps area over Libor. Guidance was set in the 15 bps area over Libor.
A second tranche was $1.75 billion of 1.365% notes due 2018 priced at par, or 40 bps over Treasuries. Price talk was set at 40 bps to 45 bps over Treasuries, which tightened from guidance set in the 50 bps area.
There was also $550 million of floaters due 2018 priced at par to yield Libor plus 17 bps. The notes were talked at the Libor equivalent to the fixed-rate notes due 2018.
Chevron also priced $1.75 billion of 1.961% notes due 2020 at par, or 50 bps over Treasuries. The notes sold at the tight end of talk set in the 50 bps to 55 bps area over Treasuries after having firmed from guidance set in the 60 bps area over Treasuries.
A $700 million tranche of 2.411% notes due 2022 sold at par, or Treasuries plus 62.5 bps. The notes priced tighter than talk set at 65 bps to 70 bps over Treasuries. Talk had firmed from guidance set in the 75 bps area.
Finally, $350 million of floating-rate notes due 2022 sold at par to yield Libor plus 53 bps. The notes were talked at the Libor equivalent to the fixed-rate notes due 2022.
BofA Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are 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: | Notes
|
| Amount: | $6 billion
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Wells Fargo Securities LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 24
|
| Settlement date: | March 3
|
| Ratings: | Moody’s: Aa1
|
| Standard & Poor’s: AA
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $900 million
|
| Maturity: | Feb. 24, 2017
|
| Coupon: | Libor plus 10 bps
|
| Price: | Par
|
| Yield: | Libor plus 10 bps
|
| Price talk: | 12.5 bps area, tightened from 15 bps area
|
|
|
| Three-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 2, 2018
|
| Coupon: | 1.365%
|
| Price: | Par
|
| Yield: | 1.365%
|
| Spread: | 40 bps
|
| Price talk: | 40 bps to 45 bps, tightened from 50 bps area
|
|
|
| Three-year floaters
|
| Amount: | $550 million
|
| Maturity: | March 2, 2018
|
| Coupon: | Libor plus 17 bps
|
| Price: | Par
|
| Yield: | Libor plus 17 bps
|
| Price talk: | Libor equivalent to three-year notes
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 3, 2020
|
| Coupon: | 1.961%
|
| Price: | Par
|
| Yield: | 1.961%
|
| Spread: | 50 bps
|
| Price talk: | 50 bps to 55 bps, tightened from 60 bps area
|
|
|
| Seven-year notes
|
| Amount: | $700 million
|
| Maturity: | March 3, 2022
|
| Coupon: | 2.411%
|
| Price: | Par
|
| Yield: | 2.411%
|
| Spread: | 62.5 bps
|
| Price talk: | 65 bps to 70 bps, tightened from 75 bps area
|
|
|
| Seven-year floaters
|
| Amount: | $350 million
|
| Maturity: | March 2, 2022
|
| Coupon: | Libor plus 53 bps
|
| Price: | Par
|
| Yield: | Libor plus 53 bps
|
| Price talk: | Libor equivalent to seven-year notes
|
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