Exxon raises $9.5 billion from the debt market while it’s still open to new deals

Exxon Mobil Corp (XOM) raised new debt of $9.5 billion on Monday. The company paid a lower price to borrow from debt markets as energy prices collapsed amid virus outbreak. Other highly-rated U.S. companies have also been tapping debt markets for cash due to the uncertainty of economic impact from coronavirus.

The logic behind Exxon’s deal was to stock up cash reserves while the market is still open to issuers of new debt, a reliable source stated.

The company aims to support its finances by selling five different bonds with a variety of durations ranging from 5 to 31 years. However, Exxon’s stock had undergone extreme pressure this year as oil prices plummeted. Its share price was down to 38.7%, a steeper fall than a 14.5% drop in the benchmark S&P 500 Index.

In a regulatory filing, Exxon said it planned to use the proceeds for “general corporate purposes.”

Companies such as General Electric Co, Walgreens Boots Alliance Inc. and Cinemark Holdings Inc. are also set to issue new debt this coming Monday.