Published on 1/11/2016 in the Prospect News Investment Grade Daily.
New Issue: EOG Resources sells $1 billion of 10-, 20-year senior notes
By Aleesia Forni
New York, Jan. 11 – EOG Resources Inc. sold $1 billion of senior notes (A3/A-) on Monday in 10- and 20-year tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $750 million 4.15% tranche of 10-year bonds sold at 99.854 to yield 4.168%, or Treasuries plus 200 basis points.
The notes priced at the tightest side of the Treasuries plus 205 bps area guidance, which had tightened from talk in the Treasuries plus 210 bps to 220 bps range.
And a $250 million 5.1% tranche of 20-year bonds sold with a 215 bps spread over Treasuries. Pricing was at 99.702 to yield 5.124%.
Guidance was in the Treasuries plus 220 bps area. Initially, talk was in the range of Treasuries plus 225 bps 235 bps.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used to repay $400 million of 2.5% senior notes due Feb. 1, 2016 and for general corporate purposes, including the repayment of commercial paper and funding of capital expenditures.
EOG is a Houston-based crude oil and natural gas company.
| Issuer: | EOG Resources Inc.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, CIBC World Markets Corp., Goldman Sachs & Co., MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC
|
| Co-managers: | BNP Paribas Securities Corp., UBS Securities LLC, U.S. Bancorp Investments, Inc., BB&T Capital Markets, BMO Capital Markets Corp., BofA Merrill Lynch, Comerica Securities, Inc., DNB Markets, Inc., PNC Capital Markets LLC
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 15
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2026
|
| Coupon: | 4.15%
|
| Price: | 99.854
|
| Yield: | 4.168%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 205 bps area, tightened from Treasuries plus 210 bps to 220 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Oct. 15, 2025, then callable at par
|
|
|
| 20-year notes
|
| Amount: | $250 million
|
| Maturity: | Jan. 15, 2035
|
| Coupon: | 5.1%
|
| Price: | 99.702
|
| Yield: | 5.124%
|
| Spread: | Treasuries plus 215 bps
|
| Price guidance: | Treasuries plus 220 bps area, tightened from Treasuries plus 225 bps 235 bps
|
| Make-whole call: | Treasuries plus 35 bps prior to July 15, 2035, then callable at par
|
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