Nexen has priced and agreed to issue US $1.0 billion of senior notes, consisting of US $300 million principal amount of 6.20% senior notes due July 30, 2019 and US $700 million principal amount of 7.50% senior notes due July 30, 2039. The 6.20% senior notes were sold at a price of 99.801% per note to yield 6.227% to maturity. The 7.50% senior notes were sold at a price of 99.445% per note to yield 7.547% to maturity.
The net proceeds from the offering of the senior notes will be used for general corporate purposes, including the repayment of outstanding debt under our revolving bank credit facility and the funding of our capital expenditure program announced in December 2008. Any funds that are not immediately required for such purposes will be invested in short-term marketable securities. The notes will be unsecured and rank equally with Nexen's other senior unsecured debt. The underwriting syndicate is lead managed by Banc of America Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
The notes will be issued under Nexen's shelf prospectus dated June 5, 2009.
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