As part of Chevron Corp.’s $6.3 billion acquisition of PDC Energy, the supermajor is offering a “premium” to PDC senior note holders that agree to exchange the debt for new notes issued by Chevron. (Source: Shutterstock.com)
As part of Chevron Corp.’s $6.3 billion acquisition of PDC Energy, the supermajor is offering a “premium” to PDC senior note holders that agree to exchange the debt for new notes issued by Chevron.
Chevron said in regulatory filings it is offering to exchange $750 million of PDC notes in order to simplify its capital structure following the Aug. 7 acquisition of PDC.
Under the terms of the offer, PDC note holders who agree to the exchange before Aug. 16 will receive $1,000 of notes backed by Chevron for each $1,000 of PDC notes. Chevron said that includes a $30 premium of Chevron notes and $1 cash. After the Aug. 16 “early participation date” ends, PDC debt holders will be eligible to receive $970 per $1,000 notes tendered, Chevron said.
The Chevron notes will have the same interest rate, maturity date, optional redemption prices and dates and interest payment dates as the PDC notes.
The notes are backed by Chevron and Chevron U.S.A. Inc. and present 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 Chevron.
A registration statement filed with the Securities and Exchange Commission on Aug. 3 details the terms of the exchange.
Recommended Reading
CNX Adds Tim Bedard as Executive Vice President of Counsel, Secretary
2023-12-05 - Alexander J. Reyes, CNX Resources Corp.'s former executive vice president of general counsel and corporate secretary, is leaving CNX after 16 years.
COP28: Victories, Challenges Still Facing Climate Agenda
2023-12-01 - COP28 gives the private sector—including those from the oil and gas industry—and other delegates an opportunity to chime in on the global climate agenda set by world leaders.
Bryan Sheffield: Asset Sellers Need Bid/Ask Therapy
2023-12-01 - Advisers need to sharpen their pencils at the negotiation table, E&P operator Bryan Sheffield said — because “all you're going to do is upset your seller by promising a market that isn't there. No one's going to pay you.”
International Petroleum Adds Deborah Starkman to Board
2023-11-30 - International Petroleum Corp. previously announced William Lundin’s appointment to the board effective Jan. 1, 2024. With both Starkman and Lundin’s addition, IPC’s board will be increased to eight directors.
Petrobras Eyes Capex of $102B Under New Strategic Plan
2023-11-28 - Petrobras plans to invest $102 billion between 2024-2028 under its new strategic plan, up 31% compared to their 2023-2027 plan, aiming to achieve production of 3.2 MMboe/d by the end of the five-year timeframe.