Published on 3/12/2015 in the Prospect News Investment Grade Daily.
New Issue: EOG prices $1 billion of 10-, 20-year senior notes
By Aleesia Forni
Virginia Beach, March 12 – EOG Resources Inc. sold on Thursday a $1 billion offering of senior notes (A3/A-/) in 10- and 20-year tranches, according to a market source and a FWP filed with the Securities and Exchange Commission.
There was a $500 million tranche of 3.15% 10-year notes priced at 99.999 to yield 3.15%, or Treasuries plus 105 basis points.
The notes sold at the tight end of guidance set in the Treasuries plus 110 bps having firmed from initial talk set in the area of 115 bps over Treasuries.
A second tranche was $500 million of 3.9% 20-year notes sold at 99.571 to yield 3.931% with a spread of Treasuries plus 125 bps.
Pricing was at the tight end of the Treasuries plus 130 bps area. Initial guidance was set in the 135 bps area over Treasuries.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC, DNB Markets Inc., Goldman Sachs & Co., MUFG, RBC Capital Markets LLC, SG Americas Securities LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes, including the funding of capital expenditures.
EOG is a Houston-based crude oil and natural gas company.
| Issuer: | EOG Resources Inc.
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| Issue: | Senior notes
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| Amount: | $1 billion
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC, DNB Markets Inc., Goldman Sachs & Co., MUFG, RBC Capital Markets LLC, SG Americas Securities LLC, U.S. Bancorp Investments Inc.
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| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Comerica Securities Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc., ANZ Securities Inc., CIBC World Markets Corp.
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| Trade date: | March 12
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| Settlement date: | March 17
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: A-
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| Distribution: | SEC-registered
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| 10-year notes
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| Amount: | $500 million
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| Maturity: | April 1, 2025
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| Coupon: | 3.15%
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| Price: | 99.999
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| Yield: | 3.15%
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| Spread: | 105 bps
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| Price talk: | 110 bps area, tightened from 115 bps area
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| Make-whole call: | 20 bps prior to Jan. 1, 2025, then callable at par
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| 20-year notes
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| Amount: | $500 million
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| Maturity: | April 1, 2035
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| Coupon: | 3.9%
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| Price: | 99.571
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| Yield: | 3.931%
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| Spread: | 125 bps
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| Price talk: | 130 bps area, tightened from 135 bps area
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| Make-whole call: | 20 bps prior to Oct. 1, 2034, then callable at par
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