Devon Energy Announces Pricing of Tender Offers

OREANDA-NEWS. Devon Energy Corporation today announced the pricing, as set forth in the table below, and expiration of its previously announced tender offers (the “Offers”) to purchase for cash any and all of its outstanding 8.250% notes due 2018 and 6.300% notes due 2019.

The Offers were made pursuant to the terms and conditions set forth in the offer to purchase, dated August 4, 2016, and the related letter of transmittal and notice of guaranteed delivery (the “Tender Offer Documents”) to purchase for cash any and all of the 8.250% notes due 2018 (the “2018 Notes”) and the 6.300% notes due 2019 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) listed in the table above.

The Offers expired at 5:00 p.m., New York City time, on August 10, 2016 (such time and date, the “Expiration Date”). Holders of Notes were required to validly tender and not validly withdraw their Notes prior to or at the Expiration Date to be eligible to receive the Total Consideration.

The “Total Consideration” listed in the table above for each $1,000 principal amount of each series of Notes validly tendered and accepted for purchase pursuant to the Offers was determined in the manner described in the Tender Offer Documents by reference to a fixed spread specified in the table above plus the yield to maturity based on the bid-side price of the applicable U.S. Treasury Reference Security specified in the table above at 2:00 p.m., New York City time, on August 10, 2016.

According to information provided by D.F. King & Co., Inc., the tender and information agent for the Offers, $96,689,000 aggregate principal amount of the 2018 Notes and $519,725,000 aggregate principal amount of the 2019 Notes were validly tendered prior to or at the Expiration Date and not validly withdrawn. These amounts include $48,015,000 aggregate principal amount of 2018 Notes and $18,539,000 aggregate principal amount of the 2019 Notes tendered pursuant to the guaranteed delivery procedures described in the Tender Offer Documents, which remain subject to the holders’ performance of the delivery requirements under such procedures. The Company has accepted for purchase all Notes validly tendered and not validly withdrawn at or prior to the Expiration Date. The Settlement Date is expected to be August 11, 2016, although the settlement of Notes tendered pursuant to guaranteed delivery procedures is expected to be August 15, 2016.

Holders will also receive accrued and unpaid interest on Notes validly tendered and accepted for purchase from the applicable last interest payment date up to, but not including, the date the Company makes payment for such Notes, which date is anticipated to be August 11, 2016 (the “Settlement Date”). The Company intends to make payment on Notes tendered by the guaranteed delivery procedures on August 15, 2016, but accrued interest will cease to accrue on the Settlement Date for all Notes accepted in the Offers, including those tendered by the guaranteed delivery procedures.

Devon Energy will fund the Offers with the net proceeds from previously completed asset sales and financing transactions. The Offers are being made to reduce the Company’s outstanding debt, including the debt of its subsidiaries.

Devon Energy is a leading independent energy company engaged in finding and producing oil and natural gas. Based in Oklahoma City and included in the S&P 500, Devon Energy operates in several of the most prolific oil and natural gas plays in the U.S. and Canada with an emphasis on a balanced portfolio. The Company is the second-largest oil producer among North American onshore independents.