By Andrea Heisinger
New York, Dec. 13 - Occidental Petroleum Corp. priced $2.6 billion of notes (A2/A/A) in a reallocated three tranches later on Monday, an informed source said.
The deal had been announced in two tranches.
The $600 million of 1.45% three-year notes priced at 99.881 to yield 1.491% with a spread of Treasuries plus 50 basis points. They were priced at the tight end of talk in the 50 to 55 bps range.
The tranche has a call option at the greater of par or a make-whole redemption at 10 bps over Treasuries.
A $700 million tranche of 2.5% five-year notes sold at 99.94 to yield 2.512% with a spread of 60 bps over Treasuries. Price talk was in the 60 bps to 65 bps range, and the notes priced at the tight end of talk.
The notes are callable at the greater of par or a make-whole of 12 bps over Treasuries.
The final tranche of notes was $1.3 billion of 4.1% 10-year maturities priced at 99.997 to yield 4.102% with a spread of Treasuries plus 80 bps. The notes were sold at the tight end of price guidance in the range of 80 bps to 85 bps.
The 10-year notes have a make-whole call of 15 bps over Treasuries until Nov. 1, 2020 and then are callable at par.
Barclays Capital Inc., Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners. Citigroup Global Markets Inc. and Wells Fargo Securities LLC were passive bookrunners.
Co-managers were Banca Imi SpA, BBVA Securities Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, Mitsubishi UFJ Securities USA Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital USA Inc., SG Americas Securities LLC, Standard Chartered Bank, UBS Securities LLC and Williams Capital Group LP.
Proceeds are being used for general corporate purposes, including acquisitions.
The oil and gas exploration and production company is based in Los Angeles.
| Issuer: | Occidental Petroleum Corp.
|
| Issue: | Notes
|
| Amount: | $2.6 billion
|
| Bookrunners: | Barclays Capital Inc., Bank of America Merrill Lynch, J.P. Morgan Securities LLC (active), Citigroup Global Markets Inc., Wells Fargo Securities LLC (passive)
|
| Co-managers: | Banca Imi SpA, BBVA Securities Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, Mitsubishi UFJ Securities USA Inc., Mizuho Securities USA Inc., RBS Securities Inc., Scotia Capital USA Inc., SG Americas Securities LLC, Standard Chartered Bank, UBS Securities LLC, Williams Capital Group LP
|
| Trade date: | Dec. 13
|
| Settlement date: | Dec. 16
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Dec. 13, 2013
|
| Coupon: | 1.45%
|
| Price: | 99.881
|
| Yield: | 1.491%
|
| Spread: | Treasuries plus 50 bps
|
| Call: | At greater of par or make-whole at Treasuries plus 10 bps
|
| Price talk: | 50 to 55 bps
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | Feb. 1, 2016
|
| Coupon: | 2.5%
|
| Price: | 99.94
|
| Yield: | 2.512%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | At greater of par or make-whole at Treasuries plus 12 bps
|
| Price talk: | 60 to 65 bps
|
|
|
| 10-year notes
|
| Amount: | $1.3 billion
|
| Maturity: | Feb. 1, 2021
|
| Coupon: | 4.1%
|
| Price: | 99.997
|
| Yield: | 4.102%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at 15 bps over Treasuries before Nov. 1, 2020, then at par
|
| Price talk: | 80 to 85 bps
|
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