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Devon Energy tender offer fully subscribed by early tender date

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Essential Energy Insights - October 2021


Devon Energy tender offer fully subscribed by early tender date

Devon Energy Corp.'s tender offer for certain of its debt securities issued by Devon or Devon Financing Co. LLC has been fully subscribed as of the early tender date.

The notes included in the offer are, in order of its acceptance priority level, the 7.875% debentures due 2031, 7.950% debentures due 2032, 5.850% notes due 2025, 5.600% notes due 2041 and 3.250% notes due 2022, the last of which has been capped at $250 million.

As of the early tender date, or March 20, about $384.0 million of the 2031 notes were validly tendered and not withdrawn and about $423.1 million of the 2032 notes were validly tendered and not withdraw, making them eligible for the early tender payment of $30 per $1,000 principal amount of securities.

The total consideration payable to the 2031 and 2032 notes exceeds the previous maximum repurchase amount of $1.0 billion, prompting Devon to increase it to about $1.1 billion in order to pay the total consideration for said notes, according to a Form 8-K filed March 22.

Since the tender offer has been fully subscribed, any notes tendered after March 20, along with all the other notes tendered at or prior to the early tender date, will be returned to the holders thereof.

The oil and natural gas exploration and production company made the tender offer in conjunction with the sale of the southern portion of its Barnett Shale position as it turns its focus toward the Delaware Basin and STACK play.