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
Post Oak Backs Third E&P: Tiburon Captures Liquids-rich Utica Deal
2024-10-15 - Since September, Post Oak Energy Capital has backed new portfolio companies in the Permian Basin and Haynesville Shale and made an equity commitment to Utica Shale E&P Tiburon Oil & Gas Partners.
Geologist James Parr Joins Ring as EVP of Exploration, Geosciences
2024-11-26 - James Parr joins Ring Energy with over 30 years of experience as a petroleum geologist and leader in multiple energy organizations.
EON Enters Funding Arrangement for Permian Well Completions
2024-12-02 - EON Resources, formerly HNR Acquisition, is securing funds to develop 45 wells on its 13,700 leasehold acres in Eddy County, New Mexico.
NOV Appoints Former Denbury CEO Chris Kendall to Board
2024-12-16 - NOV Inc. appointed former Denbury CEO Chris Kendall to its board, which has expanded to 11 directors.
SandRidge Recasts Management with New Chairman, CFO
2024-10-03 - SandRidge Energy has appointed Vincent Intrieri as chairman to succeed Jonathan Frates, who will transition to the role of executive vice president and CFO.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.