US stocks turned in a mixed performance on Monday after OPEC and various other oil-producing nations reached a deal on a massive production cut. At the close, the Dow Jones Industrial Average was down 1.39% at 23,390.77 and the S&P 500 was 1.01% weaker at 2,761.63, while the Nasdaq Composite saw out the session 0.48% firmer at 8,192.42.
European and Maltese markets were closed for Easter Monday.
Exxon raises $9.5 billion to load up on cash while debt market still open to new deals
Exxon Mobil Corp on Monday raised 9.5 billion USD in new debt, with the largest U.S. oil producer seeking to bolster its finances while debt markets remain open to new deals.
Exxon paid a lower price to borrow than it did in a similar debt deal almost four weeks ago, a sign of how investor confidence is gradually returning after a rout in energy prices and a stock market collapse fueled by the coronavirus outbreak.
Nevertheless, borrowing costs for Exxon were still higher than prior to the coronavirus outbreak.
Exxon raised USD 9.5 billion by selling five different bonds with a variety of durations ranging from five years to 31 years, up from USD 9 billion which it had originally planned to raise, indicating robust investor demand.
The new issue by Exxon comes as highly rated U.S. companies have been tapping debt markets for cash at a record clip, stocking up on cash due to the uncertainty surrounding the economic impact from coronavirus.
The logic behind Exxon’s deal was to stock up further on cash while the market is still open to issuers of new debt.
This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.