By Rebecca Melvin
New York, July 22 - Apache Corp. priced $1.1 billion of 6% three-year mandatory convertible preferred stock at par of $50.00 after the close of markets Thursday with an initial conversion premium of 24%, a syndicate source said.
The registered, off-the-shelf offering priced at the rich end of dividend talk of 6% to 6.5% and beyond the rich end of talk for the initial conversion premium, which was 18% to 22%.
Apache also priced 23 million shares of common stock at $88.00 per share. That offering was upsized from an originally talked 21 million of shares.
Goldman Sachs & Co., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. were the joint bookrunners for the offerings.
Proceeds are expected to fund a portion of the $5 billion deposit associated with the acquisition of properties from BP plc.
Houston-based Apache is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the U.K. North Sea, Australia and Argentina.
| Issuer: | Apache Corp.
|
| Issue: | Mandatory convertible preferreds
|
| Amount: | $1.1 billion
|
| Concurrent offering: | 23 million common shares, at $88.00 per share, upsized from 21 million shares
|
| Maturity: | Aug. 1, 2013
|
| Bookrunners: | Goldman Sachs & Co., Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities Inc.
|
| Dividend: | 6%
|
| Price: | Par, $50.00
|
| Conversion premium: | 24%
|
| Call protection: | Non-callable
|
| Puts: | No puts
|
| Price talk: | 6%-6.5%, up 18%-22%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | July 22
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | NYSE: APA
|
| Stock reference price: | $88.00
|
| Closing stock price: | $89.28 close July 22
|
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