By Cristal Cody
Tupelo, Miss., April 8 – EOG Resources, Inc. sold $1.5 billion of senior notes (A3/A-) in two parts on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
EOG priced $750 million of 4.375% 10-year notes at 99.96 to yield 4.38% and a spread of Treasuries plus 362.5 basis points.
A $750 million tranche of 4.95% 30-year notes priced at 99.412 to yield 4.988%, or a 362.5 bps over Treasuries spread.
Both tranches were talked at the Treasuries plus 450 bps area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the bookrunners.
EOG Resources had announced a three-part registered offering on March 20, but the deal was postponed amidst the increasing coronavirus-related market volatility.
The company dropped a third tranche that was proposed in the March 20 filing.
Proceeds from Wednesday’s deal will be used for general corporate purposes, including repayment of the company’s $500 million of 4.4% senior notes when they mature on June 1, 2020.
Proceeds from the March 20 offering would also have been used to repay $500 million of 2.45% senior notes due April 1, 2020 at maturity.
EOG is a Houston-based crude oil and natural gas company.
| Issuer: | EOG Resources, Inc.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., CIBC World Markets Corp., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Comerica Securities, Inc.
|
| Trade date: | April 8
|
| Settlement date: | April 14
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2030
|
| Coupon: | 4.375%
|
| Price: | 99.96
|
| Yield: | 4.38%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call features: | Make-whole call before Jan. 15, 2030 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 450 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2050
|
| Coupon: | 4.95%
|
| Price: | 99.412
|
| Yield: | 4.988%
|
| Spread: | Treasuries plus 362.5 bps
|
| Call features: | Make-whole call before Oct. 15, 2049 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 450 bps area
|
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