Chevron Said to Plan Biggest Energy Bond Deal Since Oil Plunge
2014-11-10 19:16:41.36 GMT
By Katherine Chiglinsky
Nov. 10 (Bloomberg) -- Chevron Corp. the second-largest
U.S. oil and gas producer, plans to sell benchmark-sized bonds
today in what would be the biggest offering by an energy company
since oil prices began plunging to a four-year low.
The company may issue $4 billion in a six-part offering
with both floating-rate and fixed-rate securities, according to
a person with knowledge of the transaction who asked not to be
identified, citing lack of authorization to speak publicly.
Brent crude oil prices dropped to the lowest level in four years
at $81.63 a barrel Nov. 5, according to data compiled by
Bloomberg.
The bond sale would be Chevron’s first since it issued $6
billion of notes in June 2013, Bloomberg data show. The recent
slump in oil has affected investment-grade energy companies less
than high-yield, Deutsche Bank AG credit strategists Oleg
Melentyev and Daniel Sorid wrote in a note Nov. 7.
Investment-grade energy companies remain in “relatively
healthy shape from a leverage and coverage ratio standpoint
going into the oil price correction,” Melentyev and Sorid wrote
in the note.
The bond offering may be used to help refinance some of the
San Ramon, California-based company’s debt including commercial
paper borrowings, according to a regulatory filing today.
Moody’s Investors Service rates Chevron Aa1, while Standard
& Poor’s grades it one one level lower at AA.
For Related News and Information:
Brent Near 4-Year Low as Iraq Follows Saudi Price Cuts NSN
NDEGN36TTDS5<GO>
Refineries Rescue Exxon, Chevron From Pain of Oil Fall NSN
NEH1G26S972P<GO>
Company News: CVX US Equity CN BN <GO>
New Bond Sales: NIM3 <GO>
Top Bond Stories: TOP BON <GO>
Top Stories:TOP<GO>
To contact the reporter on this story:
Katherine Chiglinsky in New York at +1-212-617-9330 or
kchiglinsky@bloomberg.net
To contact the editors responsible for this story:
Shannon D. Harrington at +1-212-617-8558 or
sharrington6@bloomberg.net
Faris Khan, Mitchell Martin
2014-11-10 19:16:41.36 GMT
By Katherine Chiglinsky
Nov. 10 (Bloomberg) -- Chevron Corp. the second-largest
U.S. oil and gas producer, plans to sell benchmark-sized bonds
today in what would be the biggest offering by an energy company
since oil prices began plunging to a four-year low.
The company may issue $4 billion in a six-part offering
with both floating-rate and fixed-rate securities, according to
a person with knowledge of the transaction who asked not to be
identified, citing lack of authorization to speak publicly.
Brent crude oil prices dropped to the lowest level in four years
at $81.63 a barrel Nov. 5, according to data compiled by
Bloomberg.
The bond sale would be Chevron’s first since it issued $6
billion of notes in June 2013, Bloomberg data show. The recent
slump in oil has affected investment-grade energy companies less
than high-yield, Deutsche Bank AG credit strategists Oleg
Melentyev and Daniel Sorid wrote in a note Nov. 7.
Investment-grade energy companies remain in “relatively
healthy shape from a leverage and coverage ratio standpoint
going into the oil price correction,” Melentyev and Sorid wrote
in the note.
The bond offering may be used to help refinance some of the
San Ramon, California-based company’s debt including commercial
paper borrowings, according to a regulatory filing today.
Moody’s Investors Service rates Chevron Aa1, while Standard
& Poor’s grades it one one level lower at AA.
For Related News and Information:
Brent Near 4-Year Low as Iraq Follows Saudi Price Cuts NSN
NDEGN36TTDS5<GO>
Refineries Rescue Exxon, Chevron From Pain of Oil Fall NSN
NEH1G26S972P<GO>
Company News: CVX US Equity CN BN <GO>
New Bond Sales: NIM3 <GO>
Top Bond Stories: TOP BON <GO>
Top Stories:TOP<GO>
To contact the reporter on this story:
Katherine Chiglinsky in New York at +1-212-617-9330 or
kchiglinsky@bloomberg.net
To contact the editors responsible for this story:
Shannon D. Harrington at +1-212-617-8558 or
sharrington6@bloomberg.net
Faris Khan, Mitchell Martin