Published on 8/14/2018 in the Prospect News Investment Grade Daily.
New Issue: Apache sells $1 billion 4.375% 10-year senior notes at 150 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 14 – Apache Corp. sold $1 billion of 4.375% 10-year senior notes (Baa3/BBB/BBB) on Tuesday at a spread of 150 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.845 to yield 4.393%.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.
The company held fixed income investor calls on Monday.
Proceeds will be used to fund tender offers for up to $800 million of outstanding bonds and for general corporate purposes.
Apache is an oil and natural gas exploration and production company based in Houston.
| Issuer: | Apache Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Maturity: | Oct. 15, 2028
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., ING Financial Markets LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
|
| Coupon: | 4.375%
|
| Price: | 99.845
|
| Yield: | 4.393%
|
| Spread: | Treasuries plus 150 bps
|
| Call feature: | Make-whole call before three months prior to maturity at price equal to greater of par or Treasuries plus 25 bps; thereafter at par
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
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