Chevron Corp. (NYSE: CVX) intends to redeem Texaco Capital Bond on March 1.
The indenture trustee of the "Texaco Capital Inc. 7.5% Guaranteed Debentures Due 2043" with face value of $83.72 million has been notified that the bond will be redeemed as per the terms of the prospectus supplement dated March 4, 1993. Chevron is the guarantor of the debenture and is required to give 30 to 60 days notification to the indenture trustee prior to the redemption. The terms of the redemption are the face value plus a 2.717% premium and accrued interest.
Chevron stated the redemption is due to high associated coupon payments, and the transaction will be financed using existing cash, according to the release.