Chevron Corp. has terminated an exchange offer for PDC Energy bonds after the California supermajor was unable to secure consent from PDC debt holders. The announcement came two weeks after Chevron announced the close of its $6.3 billion purchase of PDC Energy.

Bertrand Donnes, an energy research analyst for Truist Securities, said Chevron could not get enough consents to change restrictive covenants in the PDC notes.

Chevron and its subsidiary, Chevron U.S.A. Inc., were offering PDC holders willing to exchange before Aug. 18, $1,000 of notes backed by Chevron for each $1,000 of PDC notes. Chevron previously said the offer was inclusive of a $30 premium of Chevron notes and $1 cash. After the “early participation date,” PDC debt holders would have been eligible to receive $970 per $1,000 notes tendered.

The Chevron notes presented an even exchange of 5.75% PDC Energy senior notes due 2026 for 5.75% senior notes due 2026 to be issued by Chevron U.S.A., according to a previous Chevron statement about the company’s exchange offer.

In an Aug. 21 statement announcing termination of the offer, Chevron said it does not expect that a majority of the old PDC notes will be tendered. The statement said PDC Energy intends to redeem the old notes on or after May 15, 2024 at a redemption price equal to 100% of the aggregate principal amount of the old notes plus accrued and unpaid interest.