ConocoPhillips sells new investment-grade bonds to fund Surmont oil-sands acquisition

Sri Taylor and Josyana Joshua, Bloomberg August 08, 2023

(Bloomberg) – ConocoPhillips is selling new investment-grade bonds Tuesday that will help fund its acquisition of the remaining interest in the Surmont oil

sands field.


The oil company is selling $2.7 billion of notes in three parts, according to a person familiar with the matter. The longest portion, a 40-year note, will yield 1.5 percentage points over Treasuries, after initial discussions suggested 1.75 points, said the person, who asked not to be identified as the details are private.

Mitsubishi UFJ Financial Group Inc., Toronto-Dominion Bank, Bank of America Corp. and Mizuho Financial Group Inc. are leading the deal.

ConocoPhillips joins a batch of borrowers raising fresh debt in the investment-grade bond market as companies look to clear trades ahead of inflation data due Thursday. The firm is among eight issuers surfacing with new deals Tuesday after nine issuers kicked off the week on Monday.

The Houston-based firm was last in the market in May, when it sold a $1.1 billion high-grade bond to fund a cash tender offer. The company currently has over $15.8 billion in total debt, according to data compiled by Bloomberg.

ConocoPhillips exercised its right to purchase the remaining 50% interest in Surmont from TotalEnergies SE for about $3 billion in May. The acquisition is expected to close in the second half of 2023.

ConocoPhillips declined to comment.

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