As per the latest reports, Exxon Mobil Corp has closed a $9.5 billion worth debt-deal, in an attempt to cushion its finances. Interestingly, Exxon closed the deal at a much lower interest rate than it did for a similar debt-deal about a month ago. However, the agreed-upon interest rate was still higher than those associated with pre-coronavirus deals. Nevertheless, this is a testimony to how investors are regaining trust in the lending sector post the massive stock market plummet. 

As a part of the deal, Exxon sold five different bonds with a variety of durations ranging from five years to 31 years. It had originally planned on selling bonds worth $9 billion, but heavy investors demand helped it end up raising $9.5 billion. 

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The debt market dynamics in the US has significantly changed, owing to the massive economic impact of the novel coronavirus pandemic. Major corporations in the US are sticking up cash at record rates, just to ensure that they still have enough in the bank, even if the debt market stops lending in the near future amid the global crisis.

Exxon’s debt raise is also aligned with the same reasoning. Companies are basically sticking up as much as they can, while investors are still open to lending. Exxon explained in a regulatory filing that it plans to use the fresh fund for general corporate purposes. 

As of now, Exxon’s share price is down by 38.7%, and the collapse of oil prices has taken a major hit at the already plummeting share prices.