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Nearly $17B in energy company debt has been sold in the U.S. so far this month, tapping into debt capital markets despite a rise in borrowing costs as they seek to refinance or pay off existing debt amid a slump in oil prices.
- Just this week, Chevron (NYSE:CVX) offered $4B in six tranches to repay commercial paper, while Freeport McMoRan (NYSE:FCX) sold $3B in bonds in part to refinance existing debt; last week's ~$10B of energy bonds sold included a $3B offer by ConocoPhillips (NYSE:COP) also intended for refinancing purposes.
- Other energy-related deals in the pipeline for the coming days include a new loan facility for C&J Energy Services (CJES).
- Energy bonds have been under pressure in the past couple of weeks as oil prices skid; investors are worried that a further drop in oil prices could put pressure on the highly indebted companies in the sector and potentially trigger a wave of debt restructurings.