Exxon Mobil Corp. plans to sell as much as $7 billion of bonds in what would be its largest ever debt deal and the biggest energy-related offering since the plunge in crude prices.
The world’s largest oil company by market value may issue the securities in as many as eight parts, according to a person with knowledge of the deal who asked not be identified citing lack of authorization to speak publicly. The longest-maturity portion may be 30-year notes that are expected to yield about 90 basis points more than comparable Treasuries, the person said.
Exxon holds top AAA credit ratings from Moody’s Investors Service and Standard & Poor’s, making it one of only a handful of corporations on almost equal footing as governments in debt markets.
While the 50% drop in crude oil prices since June will hurt international oil companies, Irving, Texas-based Exxon remains in a better position than most to weather the downturn, Moody’s said Tuesday in a report.
The bonds may be used to fund general corporate purposes, including acquisitions, capital expenditures, and refinancing, according to the person familiar with the deal.
Exxon last issued bonds in March, when it sold $5.5 billion in its biggest offering to date and its first deal since 1993.
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