Exxon Mobil Corp. has sold $5.5 billion in its biggest bond offering on record, according to Bloomberg. Exxon Mobil issued fixed- and floating-rate notes in a five-part sale. The company may use proceeds to finance capital spending, for acquisitions, and to refinance commercial paper borrowings.
The new securities will add to the company’s $22.7 billion of total debt, which accounted for about 39%t of its trailing 12-month cash flow at year-end, according to data compiled by Bloomberg.
Exxon Mobil sold $1 billion of 10-year 3.176% coupon bonds that yield 48 basis points more than similar-maturity treasuries; $1.75 billion of five-year debt with a 1.819% coupon and a yield spread of 25 basis points; and $1.5 billion of three-year 0.921% debt that pays 15 basis points more than benchmarks. A basis point is 0.01 percentage point.
Bloomberg says that the deal also includes $750 million of three-year floating-rate securities that pay four basis points more than the three-month London interbank offered rate and $500 million of five-year floating-rate debt yielding 15 basis points more than that benchmark. Libor, the rate at which banks say they can borrow from one another, was set at 0.23 percent Monday.
Exxon Mobil last issued bonds in 1993, according to Bloomberg data based on dollar-denominated sales of at least $250 million and restricted to US units.